Segment Reporting

9 Months Ended

Jun. 30, 2016

Segment Reporting

Segment Reporting

Note 10. Segment Reporting

We have one reportable business segment, which is RMR LLC. In the tables below, All Other Operations include the operations of RMR Inc., RMR Advisors and RMR Intl.

	Three Months Ended June 30, 2016
			All Other
Revenues	RMR LLC(1)		Operations		Total
Management services	$	41,867	$	-	$	41,867
Reimbursable payroll and related costs		9,744		-		9,744
Advisory services		-		600		600
Total revenues		51,611		600		52,211
Expenses
Compensation and benefits		22,445		274		22,719
Separation expense		1,195		-		1,195
General and administrative		5,778		332		6,110
Depreciation expense		349		-		349
Total expenses		29,767		606		30,373
Operating income		21,844		(6)		21,838
Interest and other income		62		6		68
Income before income tax expense		21,906		-		21,906
Income tax expense		-		(4,504)		(4,504)
Net income (loss)	$	21,906	$	(4,504)	$	17,402

(1) Intersegment revenues of $192 recognized by RMR LLC for services provided to the All Other Operations segment have been eliminated in the condensed consolidated financial statements.

	Nine Months Ended June 30, 2016
			All Other
Revenues	RMR LLC(1)		Operations		Total
Management services	$	182,882	$	58	$	182,940
Reimbursable payroll and related costs		25,993		-		25,993
Advisory services		-		1,741		1,741
Total revenues		208,875		1,799		210,674
Expenses
Compensation and benefits		64,712		872		65,584
Separation expense		1,358		-		1,358
General and administrative		18,234		876		19,110
Depreciation expense		1,333		-		1,333
Total expenses		85,637		1,748		87,385
Operating income		123,238		51		123,289
Interest and other income		137		7		144
Income before income tax expense		123,375		58		123,433
Income tax expense		(1)		(19,903)		(19,904)
Net income (loss)	$	123,374	$	(19,845)	$	103,529

(1) Intersegment revenues of $737 recognized by RMR LLC for services provided to the All Other Operations segment have been eliminated in the condensed consolidated financial statements.

	Three Months Ended June 30, 2015
			All Other
Revenues	RMR LLC(1)		Operations		Total
Management services	$	40,976	$	180	$	41,156
Reimbursable payroll and related costs		6,427		-		6,427
Advisory services		-		596		596
Total revenues		47,403		776		48,179
Expenses
Compensation and benefits		20,090		506		20,596
General and administrative		8,827		143		8,970
Depreciation expense		512		-		512
Total expenses		29,429		649		30,078
Operating income		17,974		127		18,101
Interest and other income		517		18		535
Unrealized losses attributable to changes in fair value of stock
accounted for under the fair value option		(1,682)		(45)		(1,727)
Income before income tax benefit (expense) and equity in earnings
of investee		16,809		100		16,909
Income tax benefit (expense)		3		(654)		(651)
Equity in earnings of investee		15		-		15
Net income (loss)	$	16,827	$	(554)	$	16,273

(1) Intersegment revenues of $297 recognized by RMR LLC for services provided to the All Other Operations segment have been eliminated in the condensed consolidated financial statements.

	Nine Months Ended June 30, 2015
			All Other
Revenues	RMR LLC(1)		Operations		Total
Management services	$	122,249	$	240	$	122,489
Reimbursable payroll and related costs		20,535		-		20,535
Advisory services		-		1,801		1,801
Total revenues		142,784		2,041		144,825
Expenses
Compensation and benefits		62,621		1,534		64,155
Separation expense		116		-		116
General and administrative		18,287		370		18,657
Depreciation expense		1,662		-		1,662
Total expenses		82,686		1,904		84,590
Operating income		60,098		137		60,235
Interest and other income		1,633		65		1,698
Unrealized gains (losses) attributable to changes in fair value of stock
accounted for under the fair value option		(317)		27		(290)
Income before income tax expense and equity in earnings
of investee		61,414		229		61,643
Income tax expense		-		(654)		(654)
Equity in earnings of investee		115		-		115
Net income (loss)	$	61,529	$	(425)	$	61,104

(1) Intersegment revenues of $893 recognized by RMR LLC for services provided to the All Other Operations segment have been eliminated in the condensed consolidated financial statements.