Segment and Geographical Information

12 Months Ended

Dec. 31, 2019

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, 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, 2019 and 2018. During 2017 there was one reportable segment as Tecnidex was acquired in December 2017.


	Year Ended December 31,
(in thousands)	2019		2018
AgroFresh Core
Revenues	150,268		158,020
Gross Profit	117,058		124,297
Tecnidex
Revenues	19,797		20,766
Gross Profit	7,958		8,218
Total Revenues	$	170,065	$	178,786
Total Gross Profit	$	125,016	$	132,515

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)	2019		2018		2017
Net sales:
North America ⁽¹⁾	$	42,247	$	43,270	$	53,556
Latin America ⁽²⁾	31,818		27,178		26,657
EMEA ⁽³⁾	81,286		93,256		70,193
Asia Pacific ⁽⁴⁾	14,714		15,082		13,620
Total Net sales	$	170,065	$	178,786	$	164,026

Sales of SmartFresh™ accounted for approximately 76%, 80%, and 87% of our total worldwide net sales for the years December 31, 2019, 2018, and 2017, respectively.

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

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

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

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

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


(in thousands)	December 31, 2019		December 31, 2018
Net property, plant and equipment:
North America	$	8,857	$	8,651
All other	4,320		4,638
Total property, plant and equipment	$	13,177	$	13,289