Segment and Geographical Information

12 Months Ended

Dec. 31, 2018

Segments

The authoritative guidance for disclosures about segments of an enterprise establishes standards for reporting information about segments. It defines operating segments as components of an enterprise about which separate financial information is available that is evaluated regularly by the chief operating decision-maker in deciding how to allocate resources and in assessing performance. We currently operate and manage our business as two operating segments. Our chief operating decision-makers allocate resources and assess performance of the business for each segment. Accordingly, we consider ourselves to have two operating and reportable segments (i) AgroFresh core and (ii) Tecnidex. AgroFresh core business is providing produce preservation and waste reduction solutions for growers and packers. Its products include SmartFresh^TM, Harvista^TM, Ripelock^TM and FreshCloud. Tecnidex is a provider of fungicides, sanitizers, waxes, and coatings primarily focused on the citrus market.

Our chief operating decision-makers do not evaluate operating segments using asset or liability information. The following table presents a breakdown of our revenues and gross profit based on reportable segments for the years ended December 31, 2018 and 2017. During 2017 and 2016 there was one reportable segment as Tecnidex was acquired in December 2017.


	Year Ended December 31,
(in thousands)	2018		2017
AgroFresh Core
Revenues	158,020		161,402
Gross Profit	124,297		130,309
Tecnidex
Revenues	20,766		2,624
Gross Profit	8,218		1,062
Total Revenues	$	178,786	$	164,026
Total Gross Profit	$	132,515	$	131,371

Geographic Regions

Net sales by geographic region, based on the location of the customer, were as follows:


	Year Ended Year Ended December 31,
(in thousands)	2018		2017		2016
Net sales:
North America ⁽¹⁾	$	43,270	$	53,556	$	56,201
Latin America ⁽²⁾	27,178		26,657		24,315
EMEA ⁽³⁾	93,256		70,193		64,671
Asia Pacific ⁽⁴⁾	15,082		13,620		14,482
Total Net sales	$	178,786	$	164,026	$	159,669

Sales of SmartFresh™ accounted for approximately 80%, 87%, and 90% of our total worldwide net sales for the years December 31, 2018, 2017, and 2016, respectively.

———————————————————————————————

(1) North America includes the United States and Canada.

(2) Latin America includes Argentina, Brazil, Chile, Costa Rica, Columbia, Dominican Republic, Ecuador, and Mexico.

(3) EMEA includes Europe, the Middle East, and Africa.

(4) Asia Pacific includes Australia, China, India, Japan, New Zealand, South Korea, and Thailand.

Net property, plant and equipment by geographic region at the end of each period was as follows:


(in thousands)	December 31, 2018		December 31, 2017
Net property, plant and equipment:
North America	$	8,651	$	7,306
All other	4,638		4,894
Total property, plant and equipment	$	13,289	$	12,200