v3.8.0.1
Segment Information
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12 Months Ended |
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| Segment Reporting [Abstract] |
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| Segment Information |
Segment Information
Prior to the Company's quarterly report as of June 30, 2017, the Company provided operating results in one reportable segment. Effective as of June 30, 2017, the Company provides operating results in three reportable segments: GovDeals, Capital Assets Group (CAG), and Retail Supply Chain Group (RSCG). These three segments constitute 99% of the Company's revenue as of September 30, 2017, and each offers separately branded marketplaces to enable sellers to achieve channel marketing objectives to reach buyers. Across its segments, the Company offers its sellers two primary transaction models as well as a suite of services, and its revenues vary depending upon the models employed and the level of service required. This change in segment presentation does not affect consolidated statements of operations and comprehensive loss, balance sheets or statements of cash flows. A description of the reportable segments follows:
| | • | The GovDeals reportable segment provides self-service solutions in which sellers list their own assets, and it consists of marketplaces that enable local and state government entities including city, county and state agencies, as well as commercial businesses located in the United States and Canada to sell surplus and salvage assets. GovDeals also offers a suite of services to sellers that includes asset sales and marketing. This segment includes the Company's GovDeals.com and AuctionDeals.com marketplaces. |
| | • | The CAG reportable segment provides full-service solutions to sellers and it consists of marketplaces that enable federal government agencies as well as commercial businesses to sell surplus, salvage, and scrap assets. The assets that the company receives as the exclusive contractor of the DLA of the DoD are sold in this segment. CAG also offers a suite of services that includes surplus management, asset valuation, asset sales and marketing. Commercial sellers are located in the United States, Europe, Australia and Asia. This segment includes the Company's Network International, GoIndustry DoveBid, Government Liquidation, and Uncle Sam's Retail Outlet marketplaces. |
| | • | The RSCG reportable segment consists of marketplaces that enable corporations located in the United States and Canada to sell surplus and salvage consumer goods and retail capital assets. RSCG also offers a suite of services that includes returns management, asset recovery, and ecommerce services. This segment includes the Company's Liquidation.com, Liquidation.com DIRECT, and Secondipity marketplaces. |
Corporate & Other primarily consists of the Company's TruckCenter and IronDirect operating segments that are not individually significant, as well as elimination adjustments. The TruckCenter business consisted of land-based, live auctions for fleet and transportation equipment. On January 30, 2017, the Company exited its TruckCenter land-based, live auction business in order to focus its time and resources on its ecommerce marketplace strategy. IronDirect offers buyers access to construction equipment, parts and services through a single ecommerce marketplace.
Decisions concerning the allocation of the Company’s resources are made by the Company’s Chief Operating Decision Maker ("CODM"), which is the Company's chief executive officer, with oversight by the Board of Directors. The Company reports segment information based on the internal performance measures used by the CODM to assess the performance of each operating segment in a given period. In connection with that assessment, the CODM uses segment gross profit to evaluate the performance of each segment. Gross profit is calculated as total revenue less cost of goods sold and seller distributions.
The following table sets forth certain financial information for the Company's reportable segments.
| | | | | | | | | | | | | | | | | | | | | | 2017 | | 2016 | | 2015 | GovDeals: | | | | | | | | Revenue | | $ | — |
| | $ | — |
| | $ | — |
| | Fee revenue | | 26,853 |
| | 22,802 |
| | 20,577 |
| | Total revenue | | 26,853 |
| | 22,802 |
| | 20,577 |
| | Gross profit | | 25,172 |
| | 21,422 |
| | 19,342 |
| | Depreciation and amortization | | 245 |
| | 241 |
| | 256 |
| | Other operating expenses | | — |
| | — |
| | — |
| | | | | | | | | CAG: | | | | | | | | Revenue | | 100,160 |
| | 140,210 |
| | 177,770 |
| | Fee revenue | | 44,971 |
| | 51,555 |
| | 34,178 |
| | Total revenue | | 145,131 |
| | 191,765 |
| | 211,949 |
| | Gross profit | | 71,934 |
| | 109,373 |
| | 135,829 |
| | Depreciation and amortization | | 1,222 |
| | 1,837 |
| | 2,107 |
| | Other operating expenses | | 465 |
| | — |
| | 84 |
| | | | | | | | | RSCG: | | | | | | | | Revenue | | 85,766 |
| | 88,986 |
| | 138,037 |
| | Fee revenue | | 9,265 |
| | 5,232 |
| | 23,776 |
| | Total revenue | | 95,032 |
| | 94,218 |
| | 161,813 |
| | Gross profit | | 30,050 |
| | 29,903 |
| | 46,656 |
| | Depreciation and amortization | | 1,134 |
| | 974 |
| | 1,372 |
| | Other operating expenses | | — |
| | — |
| | 145 |
| | | | | | | | | Corporate & Other: | | | | | | | | Revenue | | 2,644 |
| | 4,632 |
| | (139 | ) | | Fee revenue | | 356 |
| | 3,037 |
| | 2,925 |
| | Total revenue | | 2,999 |
| | 7,669 |
| | 2,786 |
| | Gross profit | | (2,666 | ) | | 1,415 |
| | 1,197 |
| | Depreciation and amortization | | 3,195 |
| | 3,449 |
| | 5,500 |
| | Other operating expenses | | 3,187 |
| | — |
| | 44 |
| | | | | | | | | Consolidated: | | | | | | | | Revenue | | 188,570 |
| | 233,828 |
| | 315,668 |
| | Fee revenue | | 81,445 |
| | 82,626 |
| | 81,457 |
| | Total revenue | | 270,015 |
| | 316,454 |
| | 397,125 |
| | Gross profit | | 124,490 |
| | 162,113 |
| | 203,023 |
| | Depreciation and amortization | | 5,796 |
| | 6,502 |
| | 9,235 |
| | Other operating expenses | | $ | 3,651 |
| | $ | — |
| | $ | 273 |
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The following table presents a reconciliation between the reportable segments and the Company's consolidated results: | | | | | | | | | | | | | | | | | | | | | | 2017 | | 2016 | | 2015 | Reconciliation: | | | | | | | | Total revenue | | $ | 270,015 |
| | $ | 316,454 |
| | $ | 397,125 |
| | Gross profit | | 124,490 |
| | 162,113 |
| | 203,023 |
| | Operating expenses | | 160,839 |
| | 196,231 |
| | 346,965 |
| | Other operating expenses | | 3,651 |
| | — |
| | 273 |
| | Interest (income) expense and other expense, net
| | (362 | ) | | (1,217 | ) | | 171 |
| | (Benefit) provision for income taxes
| | (451 | ) | | 27,025 |
| | (39,571 | ) | | Net loss
| | $ | (39,187 | ) | | $ | (59,926 | ) | | $ | (104,815 | ) |
Other operating expenses includes changes in the fair value of the Company's financial assets and business realignment expenses, which can be seen in more detail in Note 14.
See Note 5 in the Notes to the Consolidated Financial Statements for goodwill impairment information by segment.
Revenue attributed to countries that represent a significant portion of consolidated revenues are as follows: | | | | | | | | | | | | | | | | | | | 2017 | | 2016 | | 2015 | United States | | 240,102 |
| | 281,328 |
| | 366,149 |
| Rest of the world | | 29,913 |
| | 35,126 |
| | 30,976 |
| Consolidated | | $ | 270,015 |
| | $ | 316,454 |
| | $ | 397,125 |
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Total segment assets reconciled to consolidated amounts are as follows: | | | | | | | | | | September 30, | | | | | 2017 | | 2016 | Segment Assets: | | | | | GovDeals | | 43,262 |
| | 38,828 |
| CAG | | 115,514 |
| | 121,352 |
| RSCG | | 39,766 |
| | — |
| Corporate & Other | | 16,687 |
| | 99,929 |
| Total Segment Assets: | | 215,229 |
| | 260,109 |
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As of September 30, 2016, the RSCG segment balance sheet was included within Corporate & Other because it was not practical for the Company to separate the RSCG and Corporate & Other balance sheets at that time. As of September 30, 2017, the RSCG and corporate balance sheets have been separated.
Total long-lived assets by geographic areas are presented as follows: | | | | | | | | | | September 30, | | | | | 2017 | | 2016 | United States | | 16,142 |
| | 14,159 |
| Rest of the world | | 650 |
| | 217 |
| Consolidated | | 16,793 |
| | 14,376 |
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Property and equipment, additions by segment are presented as follows: | | | | | | | | | | September 30, | | | | | 2017 | | 2016 | GovDeals | | 223 |
| | 242 |
| CAG | | 938 |
| | 39 |
| RSCG | | 733 |
| | — |
| Corporate & Other | | 5,911 |
| | 5,809 |
| Consolidated | | 7,805 |
| | 6,090 |
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- DefinitionThe entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments.
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