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Segment Information Segment Information
 9 Months Ended
Jun. 30, 2017
Segment Reporting [Abstract]  
Segment Information
Segment Information

In prior periods, the Company presented one reportable segment. Effective this quarter, the Company is providing operating results in three reportable segments: GovDeals, Capital Assets Group (CAG), and Retail Supply Chain Group
(RSCG). These three segments constitute 98% of our revenue as of June 30, 2017, and each offers separately branded marketplaces to enable sellers to achieve channel marketing objectives to reach buyers. Across our segments, the Company offers its seller-clients various transaction models as well as a suite of services, and our 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:

•
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 that includes asset sales and marketing, and client self-service. This segment includes our GovDeals.com and AuctionDeals.com marketplaces.

•
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 Defense Logistics Agency (DLA) Disposition Services of the U.S. Department of Defense are sold in this segment. CAG also offers a suite of services that includes surplus management, asset valuation, and asset sales and marketing. Commercial sellers are located in the United States, Europe, Australia and Asia. This segment includes our Network International, GoIndustry DoveBid, Government Liquidation, and Uncle Sam's Retail Outlet marketplaces.

•
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 our 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.

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 CEO, 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 evaluates the performance of each segment based upon segment gross profit. Gross profit is calculated as total revenue less cost of goods sold and client distributions.

The following table sets forth certain financial information for the Company's reportable segments.

 
 
 
Three Months Ended June 30,
 
Nine Months Ended June 30,
 
 
 
2017
 
2016
 
2017
 
2016
GovDeals:
 
 
 
 
 
 
 
 
 
Revenue
 
$
7,464

 
$
6,420

 
$
19,901

 
$
17,067

 
Gross profit
 
$
7,023

 
$
6,041

 
$
18,670

 
$
16,040

 
 
 
 
 
 
 
 
 
 
CAG:
 
 
 
 
 
 
 
 
 
Revenue
 
$
34,400

 
$
54,199

 
$
113,978

 
$
146,692

 
Gross profit
 
$
17,418

 
$
29,352

 
$
56,961

 
$
85,171

 
 
 
 
 
 
 
 
 
 
RSCG:
 
 
 
 
 
 
 
 
 
Revenue
 
$
23,528

 
$
23,804

 
$
72,029

 
$
67,818

 
Gross profit
 
$
7,398

 
$
7,675

 
$
22,566

 
$
22,176

 
 
 
 
 
 
 
 
 
 
Corporate & Other:
 
 
 
 
 
 
 
 
 
Revenue
 
$
128

 
$
765

 
$
2,742

 
$
6,364

 
Gross profit
 
$
(1,921
)
 
$
164

 
$
(1,492
)
 
$
926

 
 
 
 
 
 
 
 
 
 
Consolidated:
 
 
 
 
 
 
 
 
 
Revenue
 
$
65,520

 
$
85,188

 
$
208,650

 
$
237,941

 
Gross profit
 
29,918

 
43,232

 
96,705

 
124,313

 
Operating Expenses
 
(36,663
)
 
(41,549
)
 
(116,853
)
 
(128,177
)
 
Depreciation/Amortization
 
(1,365
)
 
(1,616
)
 
(4,228
)
 
(4,948
)
 
Acquisition costs
 
—

 
—

 
—

 
(39
)
 
Other operating expense
 
(652
)
 
—

 
(1,044
)
 
—

 
Interest income/(expense) and other expense, net
 
189

 
(208
)
 
291

 
242

 
(Provision) benefit for income taxes
 
(41
)
 
17

 
(91
)
 
2,438

 
Net loss
 
$
(8,614
)
 
$
(124
)
 
$
(25,220
)
 
$
(6,171
)

 
 
June 30,
 
September 30,
 
 
2017
 
2016
Segment Assets:
 
 
 
 
GovDeals
 
37,965

 
38,828

CAG
 
102,967

 
117,870

RSCG
 
30,991

 
—

Corporate & Other
 
59,643

 
103,411

Total Segment Assets:
 
231,566

 
260,109



As of September 30, 2016, the RSCG segment balance sheet was included within Corporate & Other. Due to the impracticality for the Company to separate those balance sheets at that time, the entire asset balance is included within the Corporate & Other line item above. As of June 30, 2017, the RSCG and corporate balance sheets have been separated.