Segment Reporting

9 Months Ended

Jun. 30, 2020

Segment Reporting [Abstract]

Segment Reporting

Segment Reporting

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

	Three Months Ended June 30, 2020
			All Other
	RMR LLC (1)		Operations			Total
Revenues:
Management services	$	38,590	$	35		$	38,625
Advisory services	—		625			625
Total management and advisory services revenues	38,590		660			39,250
Reimbursable compensation and benefits	13,479		270			13,749
Other client company reimbursable expenses	85,650		—			85,650
Total reimbursable costs	99,129		270			99,399
Total revenues	137,719		930			138,649
Expenses:
Compensation and benefits	28,203		1,366			29,569
Equity based compensation	1,255		44			1,299
Total compensation and benefits expense	29,458		1,410			30,868
General and administrative	5,292		1,043			6,335
Other client company reimbursable expenses	85,650		—			85,650
Transaction and acquisition related costs	317		110			427
Depreciation and amortization	217		12			229
Total expenses	120,934		2,575			123,509
Operating income (loss)	16,785		(1,645		)	15,140
Interest and other income	667		60			727
Equity in earnings of investees	—		458			458
Unrealized gain on equity method investment accounted for under the fair value option	1,678		—			1,678
Income (loss) before income tax expense	19,130		(1,127		)	18,003
Income tax expense	—		(2,608		)	(2,608		)
Net income (loss)	$	19,130	$	(3,735	)	$	15,395
Total assets	$	655,413	$	49,310		$	704,723

(1) Intersegment revenues of $988 recognized by RMR LLC for services provided to our All Other Operations segment have been eliminated in the condensed consolidated financial statements.

	Nine Months Ended June 30, 2020
			All Other
	RMR LLC (1)		Operations			Total
Revenues:
Management services	$	128,404	$	817		$	129,221
Advisory services	—		2,252			2,252
Total management and advisory services revenues	128,404		3,069			131,473
Reimbursable compensation and benefits	38,684		1,393			40,077
Other client company reimbursable expenses	267,852		—			267,852
Total reimbursable costs	306,536		1,393			307,929
Total revenues	434,940		4,462			439,402
Expenses:
Compensation and benefits	84,401		5,487			89,888
Equity based compensation	3,079		104			3,183
Separation costs	645		—			645
Total compensation and benefits expense	88,125		5,591			93,716
General and administrative	17,731		2,947			20,678
Other client company reimbursable expenses	267,852		—			267,852
Transaction and acquisition related costs	366		1,230			1,596
Depreciation and amortization	696		35			731
Total expenses	374,770		9,803			384,573
Operating income (loss)	60,170		(5,341		)	54,829
Interest and other income	3,753		349			4,102
Equity in earnings of investees	—		1,037			1,037
Unrealized gain on equity method investment accounted for under the fair value option	916		—			916
Income (loss) before income tax expense	64,839		(3,955		)	60,884
Income tax expense	—		(8,944		)	(8,944		)
Net income (loss)	$	64,839	$	(12,899	)	$	51,940
Total assets	$	655,413	$	49,310		$	704,723

(1) Intersegment revenues of $4,153 recognized by RMR LLC for services provided to our All Other Operations segment have been eliminated in the condensed consolidated financial statements.

	Three Months Ended June 30, 2019
				All Other
	RMR LLC (1)			Operations			Total
Revenues:
Management services	$	43,604		$	37		$	43,641
Advisory services	—			802			802
Total management and advisory services revenues	43,604			839			44,443
Reimbursable compensation and benefits	12,982			601			13,583
Other client company reimbursable expenses	85,689			—			85,689
Total reimbursable costs	98,671			601			99,272
Total revenues	142,275			1,440			143,715
Expenses:
Compensation and benefits	26,864			1,666			28,530
Equity based compensation	1,310			24			1,334
Separation costs	239			—			239
Total compensation and benefits expense	28,413			1,690			30,103
General and administrative	6,746			924			7,670
Other client company reimbursable expenses	85,689			—			85,689
Transaction and acquisition related costs	42			—			42
Depreciation and amortization	237			13			250
Total expenses	121,127			2,627			123,754
Operating income (loss)	21,148			(1,187		)	19,961
Interest and other income	2,185			223			2,408
Impairment loss on Tremont Mortgage Trust investment	—			(6,213		)	(6,213		)
Equity in earnings of investees	—			174			174
Unrealized loss on equity method investment accounted for under the fair value option	(731		)	—			(731		)
Income (loss) before income tax expense	22,602			(7,003		)	15,599
Income tax expense	—			(2,226		)	(2,226		)
Net income (loss)	$	22,602		$	(9,229	)	$	13,373
Total assets	$	606,164		$	54,275		$	660,439

(1) Intersegment revenues of $909 recognized by RMR LLC for services provided to our All Other Operations segment have been eliminated in the condensed consolidated financial statements.

	Nine Months Ended June 30, 2019
				All Other
	RMR LLC (1)			Operations			Total
Revenues:
Management services	$	133,535		$	194		$	133,729
Incentive business management fees	120,094			—			120,094
Advisory services	—			2,345			2,345
Total management and advisory services revenues	253,629			2,539			256,168
Reimbursable compensation and benefits	39,103			1,765			40,868
Other client company reimbursable expenses	257,088			—			257,088
Total reimbursable costs	296,191			1,765			297,956
Total revenues	549,820			4,304			554,124
Expenses:
Compensation and benefits	80,800			4,723			85,523
Equity based compensation	4,270			79			4,349
Separation costs	7,050			—			7,050
Total compensation and benefits expense	92,120			4,802			96,922
General and administrative	19,298			2,814			22,112
Other client company reimbursable expenses	257,088			—			257,088
Transaction and acquisition related costs	273			—			273
Depreciation and amortization	723			39			762
Total expenses	369,502			7,655			377,157
Operating income (loss)	180,318			(3,351		)	176,967
Interest and other income	5,650			752			6,402
Impairment loss on Tremont Mortgage Trust investment	—			(6,213		)	(6,213		)
Equity in earnings of investees	—			318			318
Unrealized loss on equity method investment accounted for under the fair value option	(2,978		)	—			(2,978		)
Income (loss) before income tax expense	182,990			(8,494		)	174,496
Income tax expense	—			(24,335		)	(24,335		)
Net income (loss)	$	182,990		$	(32,829	)	$	150,161
Total assets	$	606,164		$	54,275		$	660,439

(1)

Intersegment revenues of $2,696 recognized by RMR LLC for services provided to our All Other Operations segment have been eliminated in the condensed consolidated financial statements.