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Segment Information | 12 Months Ended
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Sep. 30, 2019
Segment Reporting [Abstract] |
Segment Information | Segment Information The Company provides operating results in four reportable segments: GovDeals, Capital Assets Group (CAG), Retail Supply Chain Group (RSCG), Machinio. The Company's reportable segments constituted over 99% of the Company's revenue for the year ended September 30, 2019. Descriptions of our reportable segments are as follows: •The GovDeals reportable segment provides self-directed 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 commercial businesses to sell surplus, salvage, and scrap assets. 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 and GoIndustry DoveBid marketplaces. Prior to the conclusion of the Scrap and Surplus Contracts (see Note 3), CAG sold surplus and scrap assets from the DoD on its Government Liquidation marketplace. •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 e-commerce services. This segment includes the Company's Liquidation.com, Liquidation.com DIRECT, and Secondipity marketplaces. •The Machinio reportable segment operates a global online platform for listing used equipment for sale in the construction, machine tool, transportation, printing and agriculture sectors. Machinio was acquired by the Company on July 10, 2018. We also report results of Corporate & Other, which combines two previously existing operating segments that did not meet the quantitative thresholds to be reportable segments, IronDirect and TruckCenter, with corporate activity and elimination adjustments. The Company exited the TruckCenter business in January 2017 and exited the IronDirect business in January 2019. 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:
|  |  | Year Ended September 30, |  |  |  |
(in thousands) |  |  | 2019 |  | 2018 |  | 2017
GovDeals: |  |  |  |  |  |  |
| Revenue |  | $ | — |  |  | $ | — |  |  | $ | — |
| Fee revenue |  | 32,936 |  |  | 30,214 |  |  | 26,853 |
| Total revenue |  | 32,936 |  |  | 30,214 |  |  | 26,853 |
| Gross profit |  | 30,386 |  |  | 27,990 |  |  | 25,172 |
CAG: |  |  |  |  |  |  |
| Revenue |  | 36,684 |  |  | 57,717 |  |  | 100,160 |
| Fee revenue |  | 23,558 |  |  | 30,308 |  |  | 44,971 |
| Total revenue |  | 60,242 |  |  | 88,025 |  |  | 145,131 |
| Gross profit |  | 32,679 |  |  | 48,873 |  |  | 71,934 |
RSCG: |  |  |  |  |  |  |
| Revenue |  | 110,736 |  |  | 88,295 |  |  | 85,766 |
| Fee revenue |  | 16,585 |  |  | 13,659 |  |  | 9,265 |
| Total revenue |  | 127,321 |  |  | 101,954 |  |  | 95,032 |
| Gross profit |  | 44,967 |  |  | 33,009 |  |  | 30,050 |
Machinio: |  |  |  |  |  |  |
| Revenue |  | — |  |  | — |  |  | — |
| Fee revenue |  | 5,598 |  |  | 653 |  |  | — |
| Total revenue |  | 5,598 |  |  | 653 |  |  | — |
| Gross profit |  | 5,196 |  |  | 501 |  |  | — |
Corporate & Other: |  |  |  |  |  |  |
| Revenue |  | 469 |  |  | 3,665 |  |  | 2,644 |
| Fee revenue |  | (41) |  |  | 3 |  |  | 356 |
| Total revenue |  | 428 |  |  | 3,668 |  |  | 2,999 |
| Gross profit |  | 52 |  |  | (661) |  |  | (2,666) |
Consolidated: |  |  |  |  |  |  |
| Revenue |  | 147,889 |  |  | 149,677 |  |  | 188,570 |
| Fee revenue |  | 78,636 |  |  | 74,837 |  |  | 81,445 |
| Total revenue |  | 226,525 |  |  | 224,514 |  |  | 270,015 |
| Gross profit |  | 113,280 |  |  | 109,712 |  |  | 124,490 |
The following table presents a reconciliation between gross profit used in the reportable segments and the Company's consolidated results:
|  |  | Year Ended September 30, |  |  |  |
(in thousands) |  |  | 2019 |  | 2018 |  | 2017
Reconciliation: |  |  |  |  |  |  |
| Gross profit |  | 113,280 |  |  | 109,712 |  |  | 124,490 |
| Operating expenses |  | 127,739 |  |  | 130,048 |  |  | 161,083 |
| Other operating expenses |  | 5,049 |  |  | 1,392 |  |  | 3,651 |
| Interest (income) expense and other expense, net |  | (1,448) |  |  | (785) |  |  | (606) |
| Loss before provision for income taxes |  | (18,060) |  |  | (20,943) |  |  | (39,638) |
Total segment assets reconciled to consolidated amounts are as follows. The amounts as of September 30, 2018 have been be reclassified to match the current year presentation of segment assets.
|  | September 30, |  |
(in thousands) |  | 2019 |  | 2018
Segment Assets: |  |  |  |
GovDeals |  | $ | 75,218 |  |  | $ | 47,632 |
CAG |  | 128,918 |  |  | 146,544 |
RSCG |  | 27,075 |  |  | 19,418 |
Machinio |  | 26,613 |  |  | 25,916 |
Corporate & Other, including elimination adjustments |  | (70,541) |  |  | (37,678) |
Total Segment Assets: |  | $ | 187,283 |  |  | $ | 201,832 |
Revenue attributed to countries that represent a significant portion of consolidated revenues are as follows:
|  | Year Ended September 30, |  |  |  |
(in thousands) |  | 2019 |  | 2018 |  | 2017
United States |  | $ | 191,816 |  |  | $ | 193,240 |  |  | $ | 240,102 |
Rest of the world |  | 34,709 |  |  | 31,274 |  |  | 29,913 |
Consolidated |  | $ | 226,525 |  |  | $ | 224,514 |  |  | $ | 270,015 |
Total long-lived assets by geographic areas are presented as follows:
|  | September 30, |  |
(in thousands) |  | 2019 |  | 2018
United States |  | $ | 18,455 |  |  | $ | 16,367 |
Rest of the world |  | 391 |  |  | 243 |
Consolidated |  | $ | 18,846 |  |  | $ | 16,610 |

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- Definition The 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. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI http://asc.fasb.org/topic&trid=2134510 + Details
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