Calavo Growers (CVGW) 10-Q 8 Sep 16 2016 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information	9 Months Ended
	Jul. 31, 2016shares
Document And Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Jul. 31, 2016
Document Fiscal Year Focus	2,016
Document Fiscal Period Focus	Q3
Entity Registrant Name	CALAVO GROWERS INC
Entity Central Index Key	1,133,470
Current Fiscal Year End Date	--10-31
Entity Current Reporting Status	Yes
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding	17,438,408

CONSOLIDATED CONDENSED BALANCE

CONSOLIDATED CONDENSED BALANCE SHEETS (UNAUDITED) - USD ($) $ in Thousands	Jul. 31, 2016	Oct. 31, 2015
Current assets:
Cash and cash equivalents	$ 14,650	$ 7,171
Accounts receivable, net of allowances of $1,805 (2016) $2,312 (2015)	86,575	58,606
Inventories, net	36,410	26,351
Prepaid expenses and other current assets	13,317	15,763
Advances to suppliers	2,000	2,820
Income taxes receivable		6,111
Total current assets	152,952	116,822
Property, plant, and equipment, net	80,060	69,448
Investment in Limoneira Company	30,578	27,415
Investment in unconsolidated entities	20,890	19,720
Deferred income taxes	17,588	19,277
Goodwill	18,262	18,262
Other assets	14,295	14,001
Total assets	334,625	284,945
Current liabilities:
Payable to growers	39,991	3,924
Trade accounts payable	23,667	19,600
Accrued expenses	25,837	21,311
Income taxes payable	4,675
Short-term borrowings	18,500	36,910
Dividend payable		13,907
Current portion of long-term obligations	137	2,206
Total current liabilities	112,807	97,858
Long-term liabilities:
Long-term obligations, less current portion	485	586
Deferred rent	2,315
Deferred income taxes	234	234
Total long-term liabilities	3,034	820
Commitments and contingencies
Noncontrolling interest, Calavo Salsa Lisa	285	285
Shareholders' equity:
Common stock ($0.001 par value, 100,000 shares authorized; 17,438 (2016) and 17,385 (2015) shares issued and outstanding	17	17
Additional paid-in capital	148,811	147,063
Accumulated other comprehensive income	4,428	2,419
Noncontrolling interest	989	1,011
Retained earnings	64,254	35,472
Total shareholders' equity	218,499	185,982
Total liabilities and shareholders' equity	$ 334,625	$ 284,945

CONSOLIDATED CONDENSED BALANCE3

CONSOLIDATED CONDENSED BALANCE SHEETS (UNAUDITED) (PARENTHETICAL) - USD ($) shares in Thousands, $ in Thousands	Jul. 31, 2016	Oct. 31, 2015
Statement of Financial Position [Abstract]
Allowances of accounts receivable	$ 1,805	$ 2,312
Common stock, par value	$ 0.001	$ 0.001
Common stock, shares authorized	100,000	100,000
Common stock, shares issued	17,438	17,385
Common stock, shares outstanding	17,438	17,385

CONSOLIDATED CONDENSED STATEMEN

CONSOLIDATED CONDENSED STATEMENTS OF INCOME (UNAUDITED) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Jul. 31, 2016	Jul. 31, 2015	Jul. 31, 2016	Jul. 31, 2015
Income Statement [Abstract]
Net sales	$ 263,146	$ 232,450	$ 688,024	$ 648,830
Cost of sales	230,502	208,172	607,575	583,772
Gross margin	32,644	24,278	80,449	65,058
Selling, general and administrative	12,287	10,620	34,866	30,116
Operating income	20,357	13,658	45,583	34,942
Interest expense	(210)	(195)	(612)	(654)
Other income (expense), net	(115)	88	399	514
Income before provision for income taxes	20,032	13,551	45,370	34,802
Provision for income taxes	7,323	4,910	16,609	12,390
Net income	12,709	8,641	28,761	22,412
Less: Net loss attributable to noncontrolling interest	36		22
Net income attributable to Calavo Growers, Inc.	$ 12,745	$ 8,641	$ 28,783	$ 22,412
Calavo Growers, Inc.'s net income per share:
Basic	$ 0.73	$ 0.50	$ 1.66	$ 1.30
Diluted	$ 0.73	$ 0.50	$ 1.65	$ 1.29
Number of shares used in per share computation:
Basic	17,350,883	17,301,131	17,340,270	17,290,847
Diluted	17,447,044	17,386,115	17,424,884	17,354,103

CONSOLIDATED CONDENSED STATEME5

CONSOLIDATED CONDENSED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Jul. 31, 2016	Jul. 31, 2015	Jul. 31, 2016	Jul. 31, 2015
Statement of Comprehensive Income [Abstract]
Net income	$ 12,709	$ 8,641	$ 28,761	$ 22,412
Other comprehensive income (loss), before tax:
Unrealized investment gains (losses) arising during period	(346)	(4,062)	3,164	(8,764)
Income tax benefit (expense) related to items of other comprehensive loss	126	1,422	(1,155)	3,067
Other comprehensive income (loss), net of tax	(220)	(2,640)	2,009	(5,697)
Comprehensive income	12,489	6,001	30,770	16,715
Less: Net loss attributable to noncontrolling interest	36		22
Comprehensive income – Calavo Growers, Inc	$ 12,525	$ 6,001	$ 30,792	$ 16,715

CONSOLIDATED CONDENSED STATEME6

CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($) $ in Thousands	9 Months Ended
	Jul. 31, 2016	Jul. 31, 2015
Cash Flows from Operating Activities:
Net income	$ 28,761	$ 22,412
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	6,507	5,968
Provision for losses on accounts receivable		37
Loss from unconsolidated entities	132	110
Stock compensation expense	1,577	2,021
Deferred income taxes	598
Effect on cash of changes in operating assets and liabilities:
Accounts receivable	(27,969)	(9,566)
Inventories, net	(10,059)	(551)
Prepaid expenses and other current assets	(3,438)	2,068
Advances to suppliers	820	512
Income taxes receivable/payable	10,897	1,772
Other assets	478	(296)
Payable to growers	36,064	9,220
Deferred rent	1,705
Trade accounts payable and accrued expenses	8,968	(1,179)
Net cash provided by operating activities	55,041	32,528
Cash Flows from Investing Activities:
Acquisitions of property, plant, and equipment	(15,772)	(13,855)
Proceeds received for repayment of San Rafael note	28	275
Proceeds from liquidation of Calavo Chile		262
Investment in FreshRealm		(800)
Loan to Agricola Don Memo		(1,803)
Proceeds received for repayment of loan to Agricola Don Memo	4,000
Investment in Agricola Don Memo	(1,300)	(1,000)
Net cash used in investing activities	(13,044)	(16,921)
Cash Flows from Financing Activities:
Payment of dividend to shareholders	(13,907)	(12,970)
Proceeds from revolving credit facility	178,730	199,540
Payments on revolving credit facility	(197,140)	(199,360)
Deferred financing costs	(91)
Payments on long-term obligations	(2,170)	(4,260)
Proceeds from stock option exercises	60	235
Net cash used in financing activities	(34,518)	(16,815)
Net increase (decrease) in cash and cash equivalents	7,479	(1,208)
Cash and cash equivalents, beginning of period	7,171	6,744
Cash and cash equivalents, end of period	14,650	5,536
Noncash Investing and Financing Activities:
Construction in progress included in trade accounts payable and accrued expenses	172
Collection for Agricola Belher Infrastructure Advance		845
Unrealized holding gains (losses)	$ 3,164	$ (8,764)

Description of the business

Description of the business	9 Months Ended
	Jul. 31, 2016
Accounting Policies [Abstract]
Description of the business	1. Description of the business Business Calavo Growers, Inc. (Calavo, the Company, we, us or our), is a global leader in the avocado industry and an expanding provider of value-added fresh food. Our expertise in marketing and distributing avocados, prepared avocados, and other perishable foods allows us to deliver a wide array of fresh and prepared food products to food distributors, produce wholesalers, supermarkets, and restaurants on a worldwide basis. We procure avocados principally from California and Mexico. Through our various operating facilities, we (i) sort, pack, and/or ripen avocados, tomatoes and Hawaiian grown papayas, (ii) process and package fresh cut fruit and vegetables, salads, wraps, sandwiches, fresh snacking products and a variety of behind-the-glass deli items and (iii) produce and package guacamole and salsa. The accompanying unaudited consolidated condensed financial statements have been prepared by the Company in accordance with accounting principles generally accepted in the United States and with the instructions to Form 10-Q and Article 10 of Regulation S-X of the Securities and Exchange Commission. Accordingly, they do not include all of the information and footnotes required by accounting principles generally accepted in the United States for complete financial statements. In the opinion of management, the accompanying unaudited consolidated condensed financial statements contain all adjustments, consisting of adjustments of a normal recurring nature necessary to present fairly the Company’s financial position, results of operations and cash flows. The results of operations for interim periods are not necessarily indicative of the results that may be expected for a full year. These statements should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended October 31, 2015. Recently Issued Accounting Standards In March 2016, the Financial Accounting Standards Board ("FASB") issued an Accounting Standards Update ("ASU"), which simplifies several aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. This ASU will be effective for us beginning the first day of our 2017 fiscal year. Early adoption is permitted. We are evaluating the impact of adoption of this ASU on our financial condition, result of operations and cash flows, but do not expect the adoption of this ASU to have a significant effect. In February 2016, the FASB issued an ASU, which requires a dual approach for lessee accounting under which a lessee would account for leases as finance leases or operating leases. Both finance leases and operating leases will result in the lessee recognizing a right-of use asset and a corresponding lease liability. For finance leases, the lessee would recognize interest expense and amortization of the right-of-use asset, and for operating leases, the lessee would recognize a straight-line total lease expense. The guidance also requires qualitative and specific quantitative disclosures to supplement the amounts recorded in the financial statements so that users can understand more about the nature of an entity’s leasing activities, including significant judgments and changes in judgments. This ASU will be effective for us beginning the first day of our 2019 fiscal year. Early adoption is permitted. We are evaluating the impact of adoption of this ASU on our financial condition, result of operations and cash flows, but do not expect the adoption of this ASU to have a significant effect. In January 2016, the FASB issued an ASU, which requires equity investments (except those accounted for under the equity method of accounting) to be measured at fair value with changes in fair value recognized in net income. The guidance is effective for interim and annual periods beginning after December 15, 2017. Early adoption is permitted. We are evaluating the impact of adoption of this ASU on our financial condition, result of operations and cash flows. In November 2015, the FASB issued an ASU, which amends the existing accounting standards for income taxes. The amendment required companies to report their deferred tax liabilities and deferred tax assets each as a single non-current item on their classified balance sheets. The Company elected to adopt the amendments in the first quarter of fiscal year 2016 and applied them prospectively to the current period presented, as permitted by the standard. The adoption of the amendments had no impact on the Company's net earnings or cash flow from operations for any period presented. In July 2015, the FASB issued an ASU for measuring inventory. The core principal of the guidance is that an entity should measure inventory at the lower of cost and net realizable value. Net realizable value is the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. The guidance is effective for us on a prospective basis beginning on the first day of our fiscal 2017 year. Early adoption is permitted. We are evaluating the impact of adoption of this ASU on our financial condition, result of operations and cash flows, but do not expect the adoption of this ASU to have a significant effect. In May 2014, the FASB amended the existing accounting standards for revenue recognition. The amendments are based on the principle that revenue should be recognized to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. We are required to adopt the amendments in the first quarter of fiscal 2018. Early adoption is not permitted. The amendments may be applied retrospectively to each prior period presented or retrospectively with the cumulative effect recognized as of the date of initial application. We do not expect the adoption of these amendments to have a material impact on our financial statements.

Information regarding our opera

Information regarding our operations in different segments	9 Months Ended
	Jul. 31, 2016
Segment Reporting [Abstract]
Information regarding our operations in different segments	2. Information regarding our operations in different segments 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 other fresh prepared food 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): Three months ended July 31, 2016 Three months ended July 31, 2015 Fresh Calavo Fresh Calavo products Foods RFG Total products Foods RFG Total Third-party sales: Avocados $ $ — $ — $ $ $ — $ — $ Tomatoes — — — — Papayas — — — — Other fresh products — — — — Food service — — — — Retail and club — — Total gross sales Less sales incentives Net sales $ $ $ $ $ $ $ $ Nine months ended July 31, 2016 Nine months ended July 31, 2015 Fresh Calavo Fresh Calavo products Foods RFG Total products Foods RFG Total Third-party sales: Avocados $ $ — $ — $ $ $ — $ — $ Tomatoes — — — — Papayas — — — — Other fresh products — — — — Food service — — — — Retail and club — — Total gross sales Less sales incentives Net sales $ $ $ $ $ $ $ $ Fresh Calavo products Foods RFG Total (All amounts are presented in thousands) Three months ended July 31, 2016 Net sales $ $ $ $ Cost of sales Gross margin $ $ $ $ Three months ended July 31, 2015 Net sales $ $ $ $ Cost of sales Gross margin $ $ $ $ For the three months ended July 31, 2016 and 2015, inter-segment sales and cost of sales of $1.4 million and $0.6 million between Fresh products and RFG were eliminated. For the three months ended July 31, 2016 and 2015, inter-segment sales and cost of sales of $0.7 million and $0.6 million between Calavo Foods and RFG were eliminated. Fresh Calavo products Foods RFG Total (All amounts are presented in thousands) Nine months ended July 31, 2016 Net sales $ $ $ $ Cost of sales Gross margin $ $ $ $ Nine months ended July 31, 2015 Net sales $ $ $ $ Cost of sales Gross margin $ $ $ $ For the nine months ended July 31, 2016 and 2015, inter-segment sales and cost of sales of $2.8 million and $1.2 million between Fresh products and RFG were eliminated. For the nine months ended July 31, 2016 and 2015, inter-segment sales and cost of sales of $2.0 million and $1.3 million between Calavo Foods and RFG were eliminated.

Inventories

Inventories	9 Months Ended
	Jul. 31, 2016
Inventory Disclosure [Abstract]
Inventories	3. Inventories consist of the following (in thousands): July 31, October 31, 2016 2015 Fresh fruit $ $ Packing supplies and ingredients Finished prepared foods $ $ Inventories are stated at the lower of cost or market. We periodically review the value of items in inventory and record any necessary reserves of inventory based on our assessment of market conditions. No inventory reserve was considered necessary as of July 31, 2016 and October 31, 2015.

Related party transactions

Related party transactions	9 Months Ended
	Jul. 31, 2016
Related Party Transactions [Abstract]
Related party transactions	4. Certain members of our Board of Directors market California avocados through Calavo pursuant to marketing agreements substantially similar to the marketing agreements that we enter into with other growers. During the three months ended July 31, 2016 and 2015, the aggregate amount of avocados procured from entities owned or controlled by members of our Board of Directors was $19.9 million and $9.1 million. During the nine months ended July 31, 2016 and 2015, the aggregate amount of avocados procured from entities owned or controlled by members of our Board of Directors was $23.5 million and $15.4 million. Amounts payable to these Board members were $7.9 million as of July 31, 2016. We did not have any amounts payable to these Board members as of October 31, 2015. During the three months ended July 31, 2016 and 2015, we received $0.1 million as dividend income from Limoneira Company (Limoneira). During the nine months ended July 31, 2016 and 2015, we received $0.3 million and $0.2 million as dividend income from Limoneira. In addition, we lease office space from Limoneira and paid rental expenses of $0.1 million for the three months ended July 31, 2016 and 2015. We paid rental expenses of $0.2 million for the nine months ended July 31, 2016 and 2015. Harold Edwards, who is a member of our Board of Directors, is the Chief Executive Officer of Limoneira Company. We have a 12% ownership interest in Limoneira. Additionally, our Chief Executive Officer is a member of the Limoneira Board of Directors. We currently have a member of our Board of Directors who also serves as a partner in the law firm of TroyGould PC, which frequently represents Calavo as legal counsel. During the three months ended July 31, 2016, Calavo Growers, Inc. paid fees totaling approximately $0.1 million to TroyGould PC. During the nine months ended July 31, 2016, Calavo Growers, Inc. paid fees totaling approximately $0.2 million to TroyGould PC. During the three and nine months ended July 31, 2015, Calavo Growers, Inc. paid fees totaling approximately $0.1 million to TroyGould PC. In December 2014, Calavo formed a wholly owned subsidiary Calavo Growers De Mexico, S. de R.L. de C.V. (Calavo Sub). In July 2015, Calavo Sub entered into a Shareholder Agreement with Grupo Belo del Pacifico, S.A. de C.V., (Belo) a Mexican Company owned by Agricola Belher, and formed Agricola Don Memo, S.A. de C.V. (Don Memo). Belo and Calavo Sub have an equal one-half ownership interest in Don Memo in exchange for $2 million each. Pursuant to a management service agreement, Belo, through its officers and employees, has day-to-day power and authority to manage the operations. Belo is entitled to a management fee, as defined, which is payable annually in July of each year. Additionally, Calavo Sub is entitled to commission, for the sale of produce in the Mexican National Market, United States, Canada, and any other overseas market. We loaned a total of $4.0 million to Don Memo since its formation. These monies, effectively a bridge loan, were replaced with a new loan to Don Memo from Bank of America, N.A. (BoA) during our first fiscal quarter of 2016 and our bridge loan was repaid from the proceeds of the new loan. Also, in January 2016, Calavo and BoA, entered into a Continuing and Unconditional Guaranty agreement (the Guaranty). Under the terms of the Guaranty, Calavo unconditionally guarantees and promises to pay BoA any and all Indebtedness, as defined therein, of our unconsolidated subsidiary Don Memo to BoA. Belo has also entered into a similar guarantee with BoA. These guarantees relate to a new loan in the amount of $4.5 million loan from BoA to Don Memo that closed in January 2016. Additionally, in the third quarter of fiscal 2016 we invested an additional $1.3 million into Don Memo. In total we have contributed $3.3 million, representing Calavo Sub’s 50% ownership in Don Memo, which is included as an investment in unconsolidated entities on our balance sheet. We make advances to Don Memo for operating purposes, provide additional advances as shipments are made during the season, and return the proceeds from tomato sales under this program to Don Memo, net of our commission and aforementioned advances. As of July 31, 2016 and October 31, 2015, we advanced $0.9 million and $1.8 million to Don Memo, which is netted with payable to growers. During the three and nine months ended July 31, 2016, we incurred $1.4 million and $3.5 million of expenses to Don Memo pursuant to our consignment agreement. We had grower advances due from Belher of $2.0 million and $3.0 million as of July 31, 2016 and October 31, 2015. In addition, we had infrastructure advances due from Belher of $1.8 million as of July 31, 2016 and October 31, 2015. Of these infrastructure advances $1.0 million was recorded as receivable in prepaid and other current assets. The remaining $0.8 million of these infrastructure advances are recorded in other assets. During the three months ended July 31, 2016 and 2015, we incurred $0.5 million and $0.1 million to Belher pursuant to our consignment agreement. During the nine months ended July 31, 2016 and 2015, we incurred $26.0 million and $14.2 million of expenses to Belher pursuant to our consignment agreement. In August 2015, we entered into Shareholder’s Agreement with various partners and created Avocados de Jalisco, S.A.P.I. de C.V. (“Avocados de Jalisco”). Avocados de Jalisco is a Mexican corporation created to engage in procuring, packing and selling avocados. This entity is approximately 80% owned by Calavo and was consolidated in our financial statements. Avocados de Jalisco has built a packinghouse located in Jalisco, Mexico and such packinghouse is expected to be operational at the end of the fourth quarter of 2016. As of July 31, 2016 and October 31, 2015, we have made preseason advances of approximately $0.2 million and $0.3 million to various partners of Avocados de Jalisco. The three previous owners and current executives of RFG have a majority ownership of certain entities that provide various services to RFG. RFG’s California operating facility leases a building from LIG partners, LLC (LIG) pursuant to an operating lease. RFG’s Texas operating facility leases a building from THNC, LLC (THNC) pursuant to an operating lease. Additionally, RFG sells cut produce and purchases raw materials, obtains transportation services, and shares costs for certain utilities with Third Coast Fresh Distribution (Third Coast). LIG, THNC and Third Coast are majority owned by entities owned by three employees of Calavo (former/current executives of RFG). See the following tables for the related party activity and balances for fiscal year 2016 and 2015: Three months ended July 31, (in thousands) 2016 2015 Rent paid to LIG $ $ Rent paid to THNC, LLC $ $ Sales to Third Coast $ - $ Purchases from Third Coast $ - $ Nine months ended July 31, (in thousands) 2016 2015 Rent paid to LIG $ $ Rent paid to THNC, LLC $ $ Sales to Third Coast $ - $ Purchases from Third Coast $ - $

Other assets

Other assets	9 Months Ended
	Jul. 31, 2016
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
Other assets	5. Other assets consist of the following (in thousands): July 31, October 31, 2016 2015 Intangibles, net $ $ Mexican IVA (i.e. value-added) taxes receivable Grower advances Loan to Agricola Belher Loan to FreshRealm members Notes receivable from San Rafael Other $ $ Intangible assets consist of the following (in thousands): July 31, 2016 October 31, 2015 Weighted- Gross Net Gross Net Average Carrying Accum. Book Carrying Accum. Book Useful Life Value Amortization Value Value Amortization Value Customer list/relationships 8.0 years $ $ $ $ $ $ Trade names 8.2 years Trade secrets/recipes 9.3 years Brand name intangibles indefinite — — Non-competition agreements 5.0 years — Intangibles, net $ $ $ $ $ $ We anticipate recording amortization expense of approximately $0.3 million for the remainder of fiscal 2016, with $1.1 million for fiscal year 2017 and 2018, $0.7 million for fiscal year 2019, and $0.2 million for years thereafter, through fiscal year 2023. See Note 11, for additional information related to Mexican IVA taxes.

Stock-Based Compensation

Stock-Based Compensation	9 Months Ended
	Jul. 31, 2016
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Stock-Based Compensation	6. In April 2011, our shareholders approved the Calavo Growers, Inc. 2011 Management Incentive Plan (the “2011 Plan”). All directors, officers, employees and consultants (including prospective directors, officers, employees and consultants) of Calavo and its subsidiaries are eligible to receive awards under the 2011 Plan. Up to 1,500,000 shares of common stock may be issued by Calavo under the 2011 Plan. On January 4, 2016, all 12 of our non-employee directors were granted 1,750 restricted shares each (total of 21,000 shares). These shares have full voting rights and participate in dividends as if unrestricted. The closing price of our stock on such date was $48.46. On January 3, 2017, as long as the directors are still serving on the board, these shares lose their restriction and become non-forfeitable and transferable. These shares were granted pursuant to our 2011 Management Incentive Plan. The total recognized stock-based compensation expense for these grants was $0.3 million for the three months ended July 31, 2016. The total recognized stock-based compensation expense for these grants was $0.6 million for the nine months ended July 31, 2016. On January 8, 2016, our executive officers were granted a total of 24,582 restricted shares. These shares have full voting rights and participate in dividends as if unrestricted. The closing price of our stock on such date was $48.68. These shares vest in one-third increments, on an annual basis, beginning January 8, 2017. These shares were granted pursuant to our 2011 Management Incentive Plan. The total recognized stock-based compensation expense for these grants was $0.1 million for the three months ended July 31, 2016. The total recognized stock-based compensation expense for these grants was $0.2 million for the nine months ended July 31, 2016. A summary of restricted stock activity, related to our 2011 Management Incentive Plan, is as follows (in thousands, except for per share amounts): Weighted-Average Aggregate Number of Shares Grant Price Intrinsic Value Outstanding at October 31, 2015 $ Vested $ Granted $ Outstanding at July 31, 2016 $ $ The total recognized stock-based compensation expense for restricted stock was $0.6 million and $1.6 million for the three and nine months ended July 31, 2016. Stock options are granted with exercise prices of not less than the fair market value at grant date, generally vest over one to five years and generally expire two to five years after the grant date. We settle stock option exercises with newly issued shares of common stock. We measure compensation cost for all stock-based awards at fair value on the date of grant and recognize compensation expense in our consolidated statements of operations over the service period that the awards are expected to vest. We measure the fair value of our stock based compensation awards on the date of grant. A summary of stock option activity, related to our 2005 Stock Incentive Plan, is as follows (in thousands, except for per share amounts): Weighted-Average Aggregate Number of Shares Exercise Price Intrinsic Value Outstanding at October 31, 2015 $ 18.28 Exercised $ 19.20 Outstanding at July 31, 2016 $ 18.05 $ 527 Exercisable at July 31, 2016 $ 18.05 $ 527 At July 31, 2016, outstanding and exercisable stock options had a weighted-average remaining contractual term of 2.8 years. The total recognized and unrecognized stock-based compensation expense was insignificant for the three and nine months ended July 31, 2016. A summary of stock option activity, related to our 2011 Management Incentive Plan, is as follows (in thousands, except for per share amounts): Weighted-Average Aggregate Exercise Intrinsic Number of Shares Price Value Outstanding at October 31, 2015 $ 23.00 Exercised $ 21.80 Outstanding at July 31, 2016 $ 23.09 $ 556 Exercisable at July 31, 2016 $ 23.24 $ 298 At July 31, 2016, outstanding and exercisable stock options had a weighted-average remaining contractual term of 4.6 years. The total recognized and unrecognized stock-based compensation expense was insignificant for the three and nine months ended July 31, 2016.

Other events

Other events	9 Months Ended
	Jul. 31, 2016
Text Block [Abstract]
Other events	7. Dividend payment On December 8, 2015, we paid a $0.80 per share dividend in the aggregate amount of $13.9 million to shareholders of record on November 17, 2015. Revolving credit facility In June 2016, we entered into a new Credit Agreement with Bank of America, N.A. (“Bank of America”) as administrative agent and Merrill Lynch, Pierce, Fenner & Smith Inc. as joint lead arranger and sole bookrunner, and Farm Credit West (“FCW”), as joint lead arranger. The Credit Agreement provides for a five-year, $80 million syndicated senior unsecured revolving credit facility maturing on June 14, 2021(the”Credit Facility”), which replaces the Company’s prior revolving credit facilities, which were scheduled to expire on July 1, 2016. Provided there exists no default, upon notice to Bank of America, the Company may from time to time, request an increase in the Credit Facility by an amount not exceeding $50 million (the “Accordion”). Any future exercises of the Accordion would require additional commitments from existing or new lenders. Borrowings under the Credit Facility will be at the Company’s discretion either at a Eurodollar Rate (“LIBOR”) loan plus applicable margin or a base rate loan plus applicable margin. The applicable margin will be based on the Company’s Consolidated Leverage Ratio and can range from 1.00% to 1.50% for LIBOR loans and 0.00% to 0.50% for Base Rate Loans. The Credit Facility also includes a commitment fee on the unused commitment amount at a rate per annum of 0.15%. The Credit Facility contains customary affirmative and negative covenants for agreements of this type, including the following financial covenants applicable to the Company and its subsidiaries on a consolidated basis: (a) a quarterly consolidated leverage ratio of not more than 2.50 to 1.00 and (b) a quarterly consolidated fixed charge coverage ratio of not less than 1.15 to 1.00. We were in compliance with all such covenants at July 31, 2016. The Credit Facility also contains customary events of default. If any event of default occurs and is continuing, Bank of America may take the following actions: (a) declare the commitment of each lender to make loans and any obligation of the Issuer to make credit extensions to be terminated; (b) declare the unpaid principal amount of all outstanding loans, all interest, and all other amounts to be immediately due and payable; (c) require that Calavo cash collateralize the obligations; and (d) exercise on behalf of itself, the lenders and the Issuer all rights and remedies available to it. The Company’s obligations under the Credit Agreement are unconditionally guaranteed by our subsidiary, RFG. Riverside In August 2016, we entered into an Agreement to Sell and Purchase and Escrow Instructions (the “Agreement”) with Fresh Foods, LLC, a Delaware limited liability company (the “Seller”), pursuant to which the Company will purchase from the Seller certain real property, consisting of land, a refrigerated building and select production and office equipment located at 1730 Eastridge Avenue, Riverside, California (the “Property”). Subject to adjustments and prorations as provided for in the Agreement, the purchase price for the Property will be approximately $20.0 million. The Company has deposited $0.3 million pursuant to the Agreement. The Agreement contains customary representations and warranties, covenants, closing conditions and termination provisions. The Agreement contemplates a buyer due diligence period that would lead to a closing date on or before October 22, 2016 unless the Company elects not to proceed with the purchase of the Property on or prior to such date. The Company’s wholly owned subsidiary RFG intends to operate the refrigerated facility as part of its network of USDA and organic certified fresh food facilities strategically located across the US. The Company expects to pay for all costs associated with the Property with cash on hand and available credit facilities. Mexico tax audits We conduct business internationally and, as a result, one or more of our subsidiaries files income tax returns in U.S. federal, U.S. state and certain foreign jurisdictions. Accordingly, in the normal course of business, we are subject to examination by taxing authorities, primarily in Mexico and the United States. During our third quarter of fiscal 2016, our wholly-owned subsidiary, Calavo de Mexico (“CDM”), received a written communication from the Ministry of Finance and Administration of the government of the State of Michoacan, Mexico (“MFM”) containing preliminary observations related to a fiscal 2011 tax audit of such subsidiary. MFM’s preliminary observations outline certain proposed adjustments primarily related to intercompany funding, deductions for services from certain vendors/suppliers and Value Added Tax (“VAT”). During our fourth fiscal quarter of 2016, we provided a written rebuttal to MFM’s preliminary observations. Representative of the subsidiary intend to meet and present our rebuttal to representatives of the MFM in the near future. We expect that the MFM will complete their review and issue a final assessment with respect to the fiscal 2011 tax audit no later than approximately February 2017. Additionally, we also received notice from Mexico's Federal Tax Administration Service, Servicio de Administracion Tributaria (SAT), that our wholly-owned Mexican subsidiary, Calavo de Mexico is currently under examination related to fiscal year 2013. Under Mexican law, the SAT has until approximately March 2017 to complete their review. We believe that the ultimate resolution of these matters is unlikely to have a material effect on our consolidated financial position; however, there is still a possibility that an adverse outcome of these matters could have a material effect on our consolidated financial condition.

Fair value measurements

Fair value measurements	9 Months Ended
	Jul. 31, 2016
Fair Value Disclosures [Abstract]
Fair value measurements	8. A fair value measurement is determined based on the assumptions that a market participant would use in pricing an asset or liability. A three-tiered hierarchy draws distinctions between market participant assumptions based on (i) observable inputs such as quoted prices in active markets (Level 1), (ii) inputs other than quoted prices in active markets that are observable either directly or indirectly (Level 2) and (iii) unobservable inputs that require the Company to use present value and other valuation techniques in the determination of fair value (Level 3). The following table sets forth our financial assets and liabilities as of July 31, 2016 that are measured on a recurring basis during the period, segregated by level within the fair value hierarchy: Level 1 Level 2 Level 3 Total (All amounts are pres e nted in thousands) Assets at Fair Value: Investment in Limoneira Company (1) $ - - $ Total assets at fair value $ $ - $ - $ (1) The investment in Limoneira Company consists of marketable securities in the Limoneira Company stock. We currently own approximately 12% of Limoneira’s outstanding common stock. These securities are measured at fair value by quoted market prices. Limoneira’s stock price at July 31, 2016 and October 31, 2015 equaled $17.69 per share and $15.86 per share. Unrealized gains and losses are recognized through other comprehensive income. Unrealized investment holding losses arising during the three months ended July 31, 2016 and 2015 was $0.3 million and $4.1 million. Unrealized investment holding gains arising during the nine months ended July 31, 2016 was $3.2 million. Unrealized investment holding losses arising during the nine months ended July 31, 2015 was $8.8 million.

Noncontrolling interest

Noncontrolling interest	9 Months Ended
	Jul. 31, 2016
Noncontrolling Interest [Abstract]
Noncontrolling interest	9. The following table reconciles shareholders’ equity attributable to noncontrolling interest related to Salsa Lisa and Avocados de Jalisco (in thousands). Three months Three months ended ended Salsa Lisa noncontrolling interest July 31, 2016 July 31, 2015 Noncontrolling interest, beginning $ $ Net loss attributable to noncontrolling interest of Salsa Lisa — — Noncontrolling interest, ending $ $ Nine months Nine months ended ended Salsa Lisa noncontrolling interest July 31, 2016 July 31, 2015 Noncontrolling interest, beginning $ $ Net loss attributable to noncontrolling interest of Salsa Lisa — — Noncontrolling interest, ending $ $ Three months Three months ended ended Avocados de Jalisco noncontrolling interest July 31, 2016 July 31, 2015 Noncontrolling interest, beginning $ $ — Net loss attributable to noncontrolling interest of Avocados de Jalisco — Noncontrolling interest, ending $ $ — Nine months Nine months ended ended Avocados de Jalisco noncontrolling interest July 31, 2016 July 31, 2015 Noncontrolling interest, beginning $ $ — Net loss attributable to noncontrolling interest of Avocados de Jalisco — Noncontrolling interest, ending $ $ —

Earnings per share

Earnings per share	9 Months Ended
	Jul. 31, 2016
Earnings Per Share [Abstract]
Earnings per share	10. Basic and diluted net income per share is calculated as follows (U.S. dollars in thousands, exept share and per share data): Three months ended July 31, 2016 2015 Numerator: Net Income attributable to Calavo Growers, Inc. $ $ Denominator: Weighted average shares - Basic Effect on dilutive securities – Restricted stock/options Weighted average shares - Diluted Net income per share attributable to Calavo Growers, Inc: Basic $ $ Diluted $ $ Nine months ended July 31, 2016 2015 Numerator: Net Income attributable to Calavo Growers, Inc. $ $ Denominator: Weighted average shares - Basic Effect on dilutive securities – Restricted stock/options Weighted average shares - Diluted Net income per share attributable to Calavo Growers, Inc: Basic $ $ Diluted $ $

Mexican IVA taxes receivable

Mexican IVA taxes receivable	9 Months Ended
	Jul. 31, 2016
Value Added Tax Receivable [Abstract]
Mexican IVA taxes receivable	11. Included in prepaids & other current assets and other assets are tax receivables due from the Mexican government for value-added taxes (IVA) paid in advance. CDM is charged IVA by vendors on certain expenditures in Mexico, which, insofar as they identify with the exportation of goods, translate into monthly favorable VAT balance. As of July 31, 2016 and October 31, 2015, IVA receivables totaled $14.5 million and $11.6 million. Historically, CDM received IVA refund payments from the Mexican tax authorities on a timely basis. Beginning in fiscal 2014 and continuing into fiscal 2016, however, the tax authorities began carrying out more detailed reviews of our refund requests and our supporting documentation. Additionally, they are also questioning the refunds requested attributable to IVA paid to certain suppliers that allegedly did not fulfill their own tax obligations. We believe these factors and others have contributed to delays in the processing of IVA claims by the Mexican tax authorities. Currently, we are in the process of collecting such balances through regular administrative processes, but certain amounts may ultimately need to be recovered via legal means. We believe that our operations in Mexico are properly documented and that the Mexican tax authorities will ultimately authorize the refund of the corresponding IVA amounts. It is possible, however, that a portion of this amount will not be recovered. We will continue to monitor the collection of these receivables with our outside consultants. As of July 31, 2016, $7.4 million and $7.1 million of IVA were recorded in prepaids & other current assets and other assets. As of October 31, 2015, $5.7 million and $5.9 million of IVA receivables were recorded in prepaids & other current assets and other assets.

Description of the business (Po

Description of the business (Policies)	9 Months Ended
	Jul. 31, 2016
Fair Value Disclosures [Abstract]
Business	Business Calavo Growers, Inc. (Calavo, the Company, we, us or our), is a global leader in the avocado industry and an expanding provider of value-added fresh food. Our expertise in marketing and distributing avocados, prepared avocados, and other perishable foods allows us to deliver a wide array of fresh and prepared food products to food distributors, produce wholesalers, supermarkets, and restaurants on a worldwide basis. We procure avocados principally from California and Mexico. Through our various operating facilities, we (i) sort, pack, and/or ripen avocados, tomatoes and Hawaiian grown papayas, (ii) process and package fresh cut fruit and vegetables, salads, wraps, sandwiches, fresh snacking products and a variety of behind-the-glass deli items and (iii) produce and package guacamole and salsa. The accompanying unaudited consolidated condensed financial statements have been prepared by the Company in accordance with accounting principles generally accepted in the United States and with the instructions to Form 10-Q and Article 10 of Regulation S-X of the Securities and Exchange Commission. Accordingly, they do not include all of the information and footnotes required by accounting principles generally accepted in the United States for complete financial statements. In the opinion of management, the accompanying unaudited consolidated condensed financial statements contain all adjustments, consisting of adjustments of a normal recurring nature necessary to present fairly the Company’s financial position, results of operations and cash flows. The results of operations for interim periods are not necessarily indicative of the results that may be expected for a full year. These statements should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended October 31, 2015.
Recently Adopted Accounting Pronouncements	Recently Issued Accounting Standards In March 2016, the Financial Accounting Standards Board ("FASB") issued an Accounting Standards Update ("ASU"), which simplifies several aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. This ASU will be effective for us beginning the first day of our 2017 fiscal year. Early adoption is permitted. We are evaluating the impact of adoption of this ASU on our financial condition, result of operations and cash flows, but do not expect the adoption of this ASU to have a significant effect. In February 2016, the FASB issued an ASU, which requires a dual approach for lessee accounting under which a lessee would account for leases as finance leases or operating leases. Both finance leases and operating leases will result in the lessee recognizing a right-of use asset and a corresponding lease liability. For finance leases, the lessee would recognize interest expense and amortization of the right-of-use asset, and for operating leases, the lessee would recognize a straight-line total lease expense. The guidance also requires qualitative and specific quantitative disclosures to supplement the amounts recorded in the financial statements so that users can understand more about the nature of an entity’s leasing activities, including significant judgments and changes in judgments. This ASU will be effective for us beginning the first day of our 2019 fiscal year. Early adoption is permitted. We are evaluating the impact of adoption of this ASU on our financial condition, result of operations and cash flows, but do not expect the adoption of this ASU to have a significant effect. In January 2016, the FASB issued an ASU, which requires equity investments (except those accounted for under the equity method of accounting) to be measured at fair value with changes in fair value recognized in net income. The guidance is effective for interim and annual periods beginning after December 15, 2017. Early adoption is permitted. We are evaluating the impact of adoption of this ASU on our financial condition, result of operations and cash flows. In November 2015, the FASB issued an ASU, which amends the existing accounting standards for income taxes. The amendment required companies to report their deferred tax liabilities and deferred tax assets each as a single non-current item on their classified balance sheets. The Company elected to adopt the amendments in the first quarter of fiscal year 2016 and applied them prospectively to the current period presented, as permitted by the standard. The adoption of the amendments had no impact on the Company's net earnings or cash flow from operations for any period presented. In July 2015, the FASB issued an ASU for measuring inventory. The core principal of the guidance is that an entity should measure inventory at the lower of cost and net realizable value. Net realizable value is the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. The guidance is effective for us on a prospective basis beginning on the first day of our fiscal 2017 year. Early adoption is permitted. We are evaluating the impact of adoption of this ASU on our financial condition, result of operations and cash flows, but do not expect the adoption of this ASU to have a significant effect. In May 2014, the FASB amended the existing accounting standards for revenue recognition. The amendments are based on the principle that revenue should be recognized to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. We are required to adopt the amendments in the first quarter of fiscal 2018. Early adoption is not permitted. The amendments may be applied retrospectively to each prior period presented or retrospectively with the cumulative effect recognized as of the date of initial application. We do not expect the adoption of these amendments to have a material impact on our financial statements.

Information regarding our ope19

Information regarding our operations in different segments (Tables)	9 Months Ended
	Jul. 31, 2016
Segment Reporting [Abstract]
Sales by Product Category, by Segment	The following table sets forth sales by product category, by segment (in thousands): Three months ended July 31, 2016 Three months ended July 31, 2015 Fresh Calavo Fresh Calavo products Foods RFG Total products Foods RFG Total Third-party sales: Avocados $ $ — $ — $ $ $ — $ — $ Tomatoes — — — — Papayas — — — — Other fresh products — — — — Food service — — — — Retail and club — — Total gross sales Less sales incentives Net sales $ $ $ $ $ $ $ $ Nine months ended July 31, 2016 Nine months ended July 31, 2015 Fresh Calavo Fresh Calavo products Foods RFG Total products Foods RFG Total Third-party sales: Avocados $ $ — $ — $ $ $ — $ — $ Tomatoes — — — — Papayas — — — — Other fresh products — — — — Food service — — — — Retail and club — — Total gross sales Less sales incentives Net sales $ $ $ $ $ $ $ $
Gross Margin	Fresh Calavo products Foods RFG Total (All amounts are presented in thousands) Three months ended July 31, 2016 Net sales $ $ $ $ Cost of sales Gross margin $ $ $ $ Three months ended July 31, 2015 Net sales $ $ $ $ Cost of sales Gross margin $ $ $ $ For the three months ended July 31, 2016 and 2015, inter-segment sales and cost of sales of $1.4 million and $0.6 million between Fresh products and RFG were eliminated. For the three months ended July 31, 2016 and 2015, inter-segment sales and cost of sales of $0.7 million and $0.6 million between Calavo Foods and RFG were eliminated. Fresh Calavo products Foods RFG Total (All amounts are presented in thousands) Nine months ended July 31, 2016 Net sales $ $ $ $ Cost of sales Gross margin $ $ $ $ Nine months ended July 31, 2015 Net sales $ $ $ $ Cost of sales Gross margin $ $ $ $

Inventories (Tables)

Inventories (Tables)	9 Months Ended
	Jul. 31, 2016
Inventory Disclosure [Abstract]
Schedule of Inventories	Inventories consist of the following (in thousands): July 31, October 31, 2016 2015 Fresh fruit $ $ Packing supplies and ingredients Finished prepared foods $ $

Related party transactions (Tab

Related party transactions (Tables)	9 Months Ended
	Jul. 31, 2016
Related Party Transactions [Abstract]
Schedule of related party transactions	Three months ended July 31, (in thousands) 2016 2015 Rent paid to LIG $ $ Rent paid to THNC, LLC $ $ Sales to Third Coast $ - $ Purchases from Third Coast $ - $ Nine months ended July 31, (in thousands) 2016 2015 Rent paid to LIG $ $ Rent paid to THNC, LLC $ $ Sales to Third Coast $ - $ Purchases from Third Coast $ - $

Other assets (Tables)

Other assets (Tables)	9 Months Ended
	Jul. 31, 2016
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
Schedule of Other Assets	Other assets consist of the following (in thousands): July 31, October 31, 2016 2015 Intangibles, net $ $ Mexican IVA (i.e. value-added) taxes receivable Grower advances Loan to Agricola Belher Loan to FreshRealm members Notes receivable from San Rafael Other $ $
Schedule of Intangible Assets	Intangible assets consist of the following (in thousands): July 31, 2016 October 31, 2015 Weighted- Gross Net Gross Net Average Carrying Accum. Book Carrying Accum. Book Useful Life Value Amortization Value Value Amortization Value Customer list/relationships 8.0 years $ $ $ $ $ $ Trade names 8.2 years Trade secrets/recipes 9.3 years Brand name intangibles indefinite — — Non-competition agreements 5.0 years — Intangibles, net $ $ $ $ $ $

Stock-Based Compensation (Table

Stock-Based Compensation (Tables)	9 Months Ended
	Jul. 31, 2016
Restricted Stock Activity	Weighted-Average Aggregate Number of Shares Grant Price Intrinsic Value Outstanding at October 31, 2015 $ Vested $ Granted $ Outstanding at July 31, 2016 $ $
2005 Stock Incentive Plan [Member]
Stock Option Activity, Related to Incentive Plan	A summary of stock option activity, related to our 2005 Stock Incentive Plan, is as follows (in thousands, except for per share amounts): Weighted-Average Aggregate Number of Shares Exercise Price Intrinsic Value Outstanding at October 31, 2015 $ 18.28 Exercised $ 19.20 Outstanding at July 31, 2016 $ 18.05 $ 527 Exercisable at July 31, 2016 $ 18.05 $ 527
2011 Management Incentive Plan [Member]
Stock Option Activity, Related to Incentive Plan	A summary of stock option activity, related to our 2011 Management Incentive Plan, is as follows (in thousands, except for per share amounts): Weighted-Average Aggregate Exercise Intrinsic Number of Shares Price Value Outstanding at October 31, 2015 $ 23.00 Exercised $ 21.80 Outstanding at July 31, 2016 $ 23.09 $ 556 Exercisable at July 31, 2016 $ 23.24 $ 298

Fair value measurements (Tables

Fair value measurements (Tables)	9 Months Ended
	Jul. 31, 2016
Fair Value Disclosures [Abstract]
Financial Assets and Liabilities Measured on Recurring and Non-Recurring Basis	The following table sets forth our financial assets and liabilities as of July 31, 2016 that are measured on a recurring basis during the period, segregated by level within the fair value hierarchy: Level 1 Level 2 Level 3 Total (All amounts are pres e nted in thousands) Assets at Fair Value: Investment in Limoneira Company (1) $ - - $ Total assets at fair value $ $ - $ - $ (1) The investment in Limoneira Company consists of marketable securities in the Limoneira Company stock. We currently own approximately 12% of Limoneira’s outstanding common stock. These securities are measured at fair value by quoted market prices. Limoneira’s stock price at July 31, 2016 and October 31, 2015 equaled $17.69 per share and $15.86 per share. Unrealized gains and losses are recognized through other comprehensive income. Unrealized investment holding losses arising during the three months ended July 31, 2016 and 2015 was $0.3 million and $4.1 million. Unrealized investment holding gains arising during the nine months ended July 31, 2016 was $3.2 million. Unrealized investment holding losses arising during the nine months ended July 31, 2015 was $8.8 million.

Noncontrolling interest (Tables

Noncontrolling interest (Tables)	9 Months Ended
	Jul. 31, 2016
Noncontrolling Interest [Abstract]
Reconciles Shareholders' Equity Attributable to Noncontrolling Interest	Three months Three months ended ended Salsa Lisa noncontrolling interest July 31, 2016 July 31, 2015 Noncontrolling interest, beginning $ $ Net loss attributable to noncontrolling interest of Salsa Lisa — — Noncontrolling interest, ending $ $ Nine months Nine months ended ended Salsa Lisa noncontrolling interest July 31, 2016 July 31, 2015 Noncontrolling interest, beginning $ $ Net loss attributable to noncontrolling interest of Salsa Lisa — — Noncontrolling interest, ending $ $ Three months Three months ended ended Avocados de Jalisco noncontrolling interest July 31, 2016 July 31, 2015 Noncontrolling interest, beginning $ $ — Net loss attributable to noncontrolling interest of Avocados de Jalisco — Noncontrolling interest, ending $ $ — Nine months Nine months ended ended Avocados de Jalisco noncontrolling interest July 31, 2016 July 31, 2015 Noncontrolling interest, beginning $ $ — Net loss attributable to noncontrolling interest of Avocados de Jalisco — Noncontrolling interest, ending $ $ —

Earnings per share (Tables)

Earnings per share (Tables)	9 Months Ended
	Jul. 31, 2016
Earnings Per Share [Abstract]
Schedule of basic and diluted net income per share	Three months ended July 31, 2016 2015 Numerator: Net Income attributable to Calavo Growers, Inc. $ $ Denominator: Weighted average shares - Basic Effect on dilutive securities – Restricted stock/options Weighted average shares - Diluted Net income per share attributable to Calavo Growers, Inc: Basic $ $ Diluted $ $ Nine months ended July 31, 2016 2015 Numerator: Net Income attributable to Calavo Growers, Inc. $ $ Denominator: Weighted average shares - Basic Effect on dilutive securities – Restricted stock/options Weighted average shares - Diluted Net income per share attributable to Calavo Growers, Inc: Basic $ $ Diluted $ $

Information Regarding Our Ope27

Information Regarding Our Operations in Different Segments - Additional Information (Details) $ in Thousands	3 Months Ended		9 Months Ended
	Jul. 31, 2016USD ($)	Jul. 31, 2015USD ($)	Jul. 31, 2016USD ($)segment	Jul. 31, 2015USD ($)
Segment Reporting Information [Line Items]
Number of reportable segments | segment			3
Inter-segment sales and cost of sales eliminated	$ 263,146	$ 232,450	$ 688,024	$ 648,830
Fresh products [Member]
Segment Reporting Information [Line Items]
Inter-segment sales and cost of sales eliminated	156,129	135,770	395,264	385,272
Fresh products [Member] | Intersegment Eliminations [Member]
Segment Reporting Information [Line Items]
Inter-segment sales and cost of sales eliminated	1,400	600	2,800	1,200
Calavo Foods [Member]
Segment Reporting Information [Line Items]
Inter-segment sales and cost of sales eliminated	16,285	17,485	47,126	47,001
Calavo Foods [Member] | Intersegment Eliminations [Member]
Segment Reporting Information [Line Items]
Inter-segment sales and cost of sales eliminated	$ 700	$ 600	$ 2,000	$ 1,300

Information Regarding Our Ope28

Information Regarding Our Operations in Different Segments - Sales by Product Category, by Segment (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Jul. 31, 2016	Jul. 31, 2015	Jul. 31, 2016	Jul. 31, 2015
Segment Reporting Information [Line Items]
Total gross sales	$ 267,608	$ 236,318	$ 699,878	$ 659,916
Less sales incentives	(4,462)	(3,868)	(11,854)	(11,086)
Net sales	263,146	232,450	688,024	648,830
Avocados [Member]
Segment Reporting Information [Line Items]
Total gross sales	151,364	132,165	354,785	360,334
Tomatoes [Member]
Segment Reporting Information [Line Items]
Total gross sales	2,581	1,154	34,375	16,813
Papayas [Member]
Segment Reporting Information [Line Items]
Total gross sales	2,614	2,559	7,054	6,977
Other fresh products [Member]
Segment Reporting Information [Line Items]
Total gross sales	433	607	854	2,571
Food service [Member]
Segment Reporting Information [Line Items]
Total gross sales	12,929	13,575	37,998	37,223
Retail and club [Member]
Segment Reporting Information [Line Items]
Total gross sales	97,687	86,258	264,812	235,998
Fresh products [Member]
Segment Reporting Information [Line Items]
Total gross sales	156,992	136,485	397,068	386,695
Less sales incentives	(863)	(715)	(1,804)	(1,423)
Net sales	156,129	135,770	395,264	385,272
Fresh products [Member] | Avocados [Member]
Segment Reporting Information [Line Items]
Total gross sales	151,364	132,165	354,785	360,334
Fresh products [Member] | Tomatoes [Member]
Segment Reporting Information [Line Items]
Total gross sales	2,581	1,154	34,375	16,813
Fresh products [Member] | Papayas [Member]
Segment Reporting Information [Line Items]
Total gross sales	2,614	2,559	7,054	6,977
Fresh products [Member] | Other fresh products [Member]
Segment Reporting Information [Line Items]
Total gross sales	433	607	854	2,571
Calavo Foods [Member]
Segment Reporting Information [Line Items]
Total gross sales	18,985	19,906	54,634	54,674
Less sales incentives	(2,700)	(2,421)	(7,508)	(7,673)
Net sales	16,285	17,485	47,126	47,001
Calavo Foods [Member] | Food service [Member]
Segment Reporting Information [Line Items]
Total gross sales	12,929	13,575	37,998	37,223
Calavo Foods [Member] | Retail and club [Member]
Segment Reporting Information [Line Items]
Total gross sales	6,056	6,331	16,636	17,451
RFG
Segment Reporting Information [Line Items]
Total gross sales	91,631	79,927	248,176	218,547
Less sales incentives	(899)	(732)	(2,542)	(1,990)
Net sales	90,732	79,195	245,634	216,557
RFG | Retail and club [Member]
Segment Reporting Information [Line Items]
Total gross sales	$ 91,631	$ 79,927	$ 248,176	$ 218,547

Information Regarding Our Ope29

Information Regarding Our Operations in Different Segments - Gross Margin (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Jul. 31, 2016	Jul. 31, 2015	Jul. 31, 2016	Jul. 31, 2015
Segment Reporting Information [Line Items]
Net sales	$ 263,146	$ 232,450	$ 688,024	$ 648,830
Cost of sales	230,502	208,172	607,575	583,772
Gross margin	32,644	24,278	80,449	65,058
Fresh products [Member]
Segment Reporting Information [Line Items]
Net sales	156,129	135,770	395,264	385,272
Cost of sales	137,845	126,105	352,424	355,991
Gross margin	18,284	9,665	42,840	29,281
Calavo Foods [Member]
Segment Reporting Information [Line Items]
Net sales	16,285	17,485	47,126	47,001
Cost of sales	10,484	11,415	29,228	31,725
Gross margin	5,801	6,070	17,898	15,276
RFG
Segment Reporting Information [Line Items]
Net sales	90,732	79,195	245,634	216,557
Cost of sales	82,173	70,652	225,923	196,056
Gross margin	$ 8,559	$ 8,543	$ 19,711	$ 20,501

Inventories - Schedule of Inven

Inventories - Schedule of Inventories (Details) - USD ($) $ in Thousands	Jul. 31, 2016	Oct. 31, 2015
Inventory Disclosure [Abstract]
Fresh fruit	$ 21,175	$ 11,939
Packing supplies and ingredients	7,077	6,347
Finished prepared foods	8,158	8,065
Total, Inventories	$ 36,410	$ 26,351

Related-Party Transactions (Det

Related-Party Transactions (Details) $ in Thousands	1 Months Ended	3 Months Ended		9 Months Ended
	Jul. 31, 2015USD ($)	Jul. 31, 2016USD ($)	Jul. 31, 2015USD ($)	Jul. 31, 2016USD ($)Owneritem	Jul. 31, 2015USD ($)	Jan. 31, 2016USD ($)	Oct. 31, 2015USD ($)	Aug. 31, 2015
Infrastructure Advance Agreement With Belher [Member]
Related Party Transaction [Line Items]
Infrastructure advances due		$ 1,800		$ 1,800			$ 1,800
Prepaid Expenses and Other Current Assets [Member] | Infrastructure Advance Agreement With Belher [Member]
Related Party Transaction [Line Items]
Infrastructure advances due		1,000		1,000			1,000
Other Long Term Assets [Member] | Infrastructure Advance Agreement With Belher [Member]
Related Party Transaction [Line Items]
Infrastructure advances due		800		800			800
Avocados de Jalisco noncontrolling interest [Member]
Related Party Transaction [Line Items]
Ownership interest								80.00%
Preseason advances		200		200			300
Director
Related Party Transaction [Line Items]
Accounts payable to related parties		7,900		7,900
Limoneira
Related Party Transaction [Line Items]
Dividend income from Limoneira		100	$ 100	300	$ 200
Rent paid		$ 100	100	$ 200	200
Ownership interest		12.00%		12.00%
TroyGould PC
Related Party Transaction [Line Items]
Legal fees		$ 100	100	$ 200	100
RFG
Related Party Transaction [Line Items]
Number of previous or current employees with majority owned related party entities | Owner				3
LIG, THNC and Third Coast
Related Party Transaction [Line Items]
Number of previous or current employees with majority owned related party entities | item				3
LIG
Related Party Transaction [Line Items]
Rent paid		133	131	$ 395	392
THNC
Related Party Transaction [Line Items]
Rent paid		77	76	229	228
Third Coast
Related Party Transaction [Line Items]
Purchases from related parties			86		203
Sales made to related parties			$ 31		$ 270
Calavo Sub
Related Party Transaction [Line Items]
Investment in unconsolidated entities		3,300		3,300
Calavo Sub | Belo
Related Party Transaction [Line Items]
Ownership interest	50.00%		50.00%		50.00%
Amount paid for 50% ownership	$ 2,000
Agricola Belher
Related Party Transaction [Line Items]
Advances to supplier		2,000		2,000			3,000
Agricola Don Memo
Related Party Transaction [Line Items]
Amount loaned to Don Memo since its formation		4,000		4,000
Additional investment amount		1,300
Advances to supplier		900		900			$ 1,800
Agricola Don Memo | Bank Of America | Financial Guarantee [Member]
Related Party Transaction [Line Items]
Guarantor obligation on behalf of subsidiary, maximum exposure						$ 4,500
Avocados [Member] | Director
Related Party Transaction [Line Items]
Purchases from related parties		19,900	$ 9,100	23,500	$ 15,400
Tomatoes [Member] | Agricola Belher
Related Party Transaction [Line Items]
Purchases from related parties		500	$ 100	26,000	$ 14,200
Tomatoes [Member] | Agricola Don Memo
Related Party Transaction [Line Items]
Purchases from related parties		$ 1,400		$ 3,500

Other Assets - Schedule of Othe

Other Assets - Schedule of Other Assets (Details) - USD ($) $ in Thousands	Jul. 31, 2016	Oct. 31, 2015
Statement of Financial Position [Abstract]
Intangibles, net	$ 3,660	$ 4,613
Mexican IVA (i.e. value-added) taxes receivable	7,061	5,853
Grower advances	123	346
Loan to Agricola Belher	800	800
Loan to FreshRealm members	315	307
Notes receivable from San Rafael	1,305	1,286
Other	1,031	796
Other assets	$ 14,295	$ 14,001

Other Assets - Schedule of Inta

Other Assets - Schedule of Intangible Assets (Details) - USD ($) $ in Thousands	9 Months Ended
	Jul. 31, 2016	Oct. 31, 2015
Finite-Lived Intangible Assets [Line Items]
Finite and indefinite lived intangible assets gross	$ 11,572	$ 11,572
Accum. Amortization	(7,912)	(6,959)
Intangibles, net	3,660	4,613
Brand name intangibles [Member]
Finite-Lived Intangible Assets [Line Items]
Gross carrying value and net book value	$ 275	275
Customer list/relationships [Member]
Finite-Lived Intangible Assets [Line Items]
Weighted-Average Useful Life	8 years
Gross Carrying Value	$ 7,640	7,640
Accum. Amortization	(4,997)	(4,282)
Net Book Value	$ 2,643	3,358
Trade names [Member]
Finite-Lived Intangible Assets [Line Items]
Weighted-Average Useful Life	8 years 2 months 12 days
Gross Carrying Value	$ 2,760	2,760
Accum. Amortization	(2,342)	(2,164)
Net Book Value	$ 418	596
Trade secrets/recipes [Member]
Finite-Lived Intangible Assets [Line Items]
Weighted-Average Useful Life	9 years 3 months 18 days
Gross Carrying Value	$ 630	630
Accum. Amortization	(306)	(270)
Net Book Value	$ 324	360
Non-competition agreements [Member]
Finite-Lived Intangible Assets [Line Items]
Weighted-Average Useful Life	5 years
Gross Carrying Value	$ 267	267
Accum. Amortization	$ (267)	(243)
Net Book Value		$ 24

Other Assets - Additional Infor

Other Assets - Additional Information (Details) $ in Millions	Jul. 31, 2016USD ($)
Goodwill and Intangible Assets Disclosure [Abstract]
Amortization expense for remainder of fiscal 2016	$ 0.3
Amortization expense for the year 2017	1.1
Amortization expense for the year 2018	1.1
Amortization expense for the year 2019	0.7
Amortization expense for the years 2020-2023	$ 0.2

Stock-Based Compensation - Addi

Stock-Based Compensation - Additional Information (Details) $ / shares in Units, $ in Millions	Jan. 08, 2016$ / sharesshares	Jan. 04, 2016director$ / sharesshares	Jul. 31, 2016USD ($)	Jul. 31, 2016USD ($)shares	Apr. 30, 2011shares
Stock Options [Member] | Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period				1 year
Expiration period, after grant date				2 years
Stock Options [Member] | Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period				5 years
Expiration period, after grant date				5 years
2011 Management Incentive Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Common stock shares authorized under ESPP					1,500,000
Number of non-employee directors | director		12
2011 Management Incentive Plan [Member] | Restricted Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Restricted shares granted per non-employee		1,750
Restricted shares granted		21,000		51,000
Recognized stock-based compensation expense | $			$ 0.6	$ 1.6
2011 Management Incentive Plan [Member] | Restricted Stock [Member] | Non-Employee Directors [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock price | $ / shares		$ 48.46
Recognized stock-based compensation expense | $			0.3	0.6
2011 Management Incentive Plan [Member] | Restricted Stock [Member] | Executive Officers [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Restricted shares granted	24,582
Stock price | $ / shares	$ 48.68
Recognized stock-based compensation expense | $			$ 0.1	$ 0.2
Shares vesting schedule per year				.33

Stock-Based Compensation - Summ

Stock-Based Compensation - Summary of Restricted Stock Activity (Details) - Restricted Stock [Member] - 2011 Management Incentive Plan [Member] - USD ($) $ / shares in Units, $ in Thousands	Jan. 04, 2016	Jul. 31, 2016	Oct. 31, 2015
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Outstanding, Number of Shares, Beginning Balance		75,000
Vested, Number of Shares		(39,000)
Granted, Number of Shares	21,000	51,000
Outstanding, Number of Shares, Ending Balance		87,000
Outstanding, Weighted-Average Grant Price		$ 44.76	$ 39.01
Vested, Weighted-Average Grant Price		39.5
Granted, Weighted-Average Grant Price		$ 48.58
Aggregate Intrinsic Value		$ 5,745

Stock-Based Compensation - Su37

Stock-Based Compensation - Summary of Stock Option Activity (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	9 Months Ended
	Jul. 31, 2016	Oct. 31, 2015
2005 Stock Incentive Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Outstanding stock options, weighted-average remaining contractual term	2 years 9 months 18 days
Exercisable stock options, weighted-average remaining contractual term	2 years 9 months 18 days
2011 Management Incentive Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Outstanding stock options, weighted-average remaining contractual term	4 years 7 months 6 days
Exercisable stock options, weighted-average remaining contractual term	4 years 7 months 6 days
Stock Options [Member] | 2005 Stock Incentive Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Outstanding, Number of Shares, Beginning Balance	10
Exercised, Number of Shares	(2)
Outstanding, Number of Shares, Ending Balance	8
Exercisable, Number of Shares	8
Outstanding, Weighted-Average Exercise Price	$ 18.05	$ 18.28
Exercised, Weighted-Average Exercise Price	19.20
Exercisable, Weighted-Average Exercise Price	$ 18.05
Outstanding, Aggregate Intrinsic Value	$ 527
Exercisable, Aggregate Intrinsic Value	$ 527
Stock Options [Member] | 2011 Management Incentive Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Outstanding, Number of Shares, Beginning Balance	14
Exercised, Number of Shares	(1)
Outstanding, Number of Shares, Ending Balance	13
Exercisable, Number of Shares	7
Outstanding, Weighted-Average Exercise Price	$ 23.09	$ 23
Exercised, Weighted-Average Exercise Price	21.80
Exercisable, Weighted-Average Exercise Price	$ 23.24
Outstanding, Aggregate Intrinsic Value	$ 556
Exercisable, Aggregate Intrinsic Value	$ 298

Other Events (Details)

Other Events (Details) - USD ($) $ / shares in Units, $ in Thousands	Dec. 08, 2015	Aug. 31, 2016	Jun. 30, 2016	Jul. 31, 2016	Jul. 31, 2015
Dividend payment	$ 0.80
Dividend aggregate amount to shareholders	$ 13,900			$ 13,907	$ 12,970
Revolving Credit Facility
Credit agreement term			5 years
Credit available under borrowing agreement			$ 80,000
Additional borrowing capacity			$ 50,000
Commitment fee (as a percent)				0.15%
Revolving Credit Facility | Minimum
Quarterly consolidated fixed charge coverage ratio				1.15%
Revolving Credit Facility | Minimum | LIBOR
Applicable margin (as a percent)				1.00%
Revolving Credit Facility | Minimum | Base Rate
Applicable margin (as a percent)				0.00%
Revolving Credit Facility | Maximum
Quarterly consolidated leverage ratio				2.50%
Revolving Credit Facility | Maximum | LIBOR
Applicable margin (as a percent)				1.50%
Revolving Credit Facility | Maximum | Base Rate
Applicable margin (as a percent)				0.50%
Subsequent Event | Riverside Property | Fresh Foods LLC
Property
Purchase price		$ 20,000
Amount deposited		$ 300

Fair Value Measurements - Finan

Fair Value Measurements - Financial Assets and Liabilities Measured on a Recurring Basis (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		9 Months Ended
	Jul. 31, 2016	Jul. 31, 2015	Jul. 31, 2016	Jul. 31, 2015	Oct. 31, 2015
Limoneira
Assets at Fair Value:
Percentage of outstanding shares of Limoneira's shares owned	12.00%		12.00%
Limoneira's stock price	$ 17.69		$ 17.69		$ 15.86
Unrealized investment holding income (losses)	$ 300	$ 4,100	$ 3,200	$ 8,800
Fair Value, Measurements, Recurring [Member]
Assets at Fair Value:
Total assets at fair value	30,578		30,578
Fair Value, Measurements, Recurring [Member] | Limoneira
Assets at Fair Value:
Total assets at fair value	30,578		30,578
Fair Value, Measurements, Recurring [Member] | Level 1 [Member]
Assets at Fair Value:
Total assets at fair value	30,578		30,578
Fair Value, Measurements, Recurring [Member] | Level 1 [Member] | Limoneira
Assets at Fair Value:
Total assets at fair value	$ 30,578		$ 30,578

Noncontrolling Interest - Share

Noncontrolling Interest - Shareholders' Equity Attributable to Noncontrolling Interest (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Jul. 31, 2016	Jul. 31, 2015	Jul. 31, 2016	Jul. 31, 2015
Noncontrolling Interest [Line Items]
Noncontrolling interest, beginning			$ 1,011
Net loss attributable to noncontrolling interest	$ 36		22
Noncontrolling interest, ending	989		989
Salsa Lisa noncontrolling interest [Member]
Noncontrolling Interest [Line Items]
Noncontrolling interest, beginning	285	$ 270	285	$ 270
Net loss attributable to noncontrolling interest
Noncontrolling interest, ending	285	270	285	270
Avocados de Jalisco noncontrolling interest [Member]
Noncontrolling Interest [Line Items]
Noncontrolling interest, beginning	1,025		1,011
Net loss attributable to noncontrolling interest	(36)		(22)
Noncontrolling interest, ending	$ 989		$ 989

Earnings Per Share (Details)

Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		9 Months Ended
	Jul. 31, 2016	Jul. 31, 2015	Jul. 31, 2016	Jul. 31, 2015
Earnings Per Share [Abstract]
Net income attributable to Calavo Growers, Inc.	$ 12,745	$ 8,641	$ 28,783	$ 22,412
Weighted average shares - Basic	17,350,883	17,301,131	17,340,270	17,290,847
Effect on dilutive securities - Restricted stock/options	96,161	84,984	84,614	63,256
Weighted average shares - Diluted	17,447,044	17,386,115	17,424,884	17,354,103
Basic	$ 0.73	$ 0.50	$ 1.66	$ 1.30
Diluted	$ 0.73	$ 0.50	$ 1.65	$ 1.29

Mexican IVA taxes receivable (D

Mexican IVA taxes receivable (Details) - USD ($) $ in Thousands	Jul. 31, 2016	Oct. 31, 2015
Value Added Tax Receivable [Abstract]
IVA receivables balance	$ 14,500	$ 11,600
Mexican IVA (i.e. value-added) tax receivable recorded in prepaids & other current assets	7,400	5,700
Mexican IVA (i.e. value-added) tax receivable recorded in other assets	$ 7,061	$ 5,853