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BUSINESS SEGMENTS
 12 Months Ended
Dec. 31, 2020
Segment Reporting [Abstract]  
BUSINESS SEGMENTS
25. BUSINESS SEGMENTS

Segment information has been prepared in accordance with ASC Topic 280 Segment Reporting. We determined our segments based on how we manage our business. Beginning in the first quarter of 2019, we began allocating corporate support costs (administrative functions such as finance, human resources, and legal) to our operating segments based on their estimated usage and based on how we manage our business. Comparative prior year information has not been recast and as a result our corporate support costs for those comparative prior periods remain allocated to our Retail segment. We use income (loss) before income taxes as the measure to determine our reportable segments.

Our Retail segment primarily consists of amounts earned through e-commerce sales through our Website, excluding intercompany transactions eliminated in consolidation.

Our tZERO segment primarily consists of amounts earned through securities transaction through our broker-dealers and costs incurred to execute our tZERO business initiatives, excluding intercompany transactions eliminated in consolidation.

Our MVI segment primarily consists of costs incurred to create or foster a set of products and solutions that leverage blockchain technology to generate efficiencies and increase security and control through our Medici Ventures initiatives, excluding intercompany transactions eliminated in consolidation. MVI was identified as a reportable segment separate from Other during 2019. We have recast prior period segment information to conform with current year presentation.

Other consists of our unallocated corporate support costs, Bitt, and Medici Land Governance. We deconsolidated Medici Land Governance consolidated net assets and noncontrolling interest from our consolidated financial statements beginning on February 22, 2020, the date that control ceased.
    
We do not allocate assets between our segments for our internal management purposes, and as such, they are not presented here. There were no significant inter-segment sales or transfers during the years ended December 31, 2020, 2019 and 2018.
    
The following table summarizes information about reportable segments and a reconciliation to consolidated net income (loss) for the years ended December 31, 2020, 2019 and 2018 (in thousands):
 RetailtZEROMVIOtherTotal
2020 
Net revenue$2,493,915 $45,792 $9,664 $412 $2,549,783 
Cost of goods sold1,922,559 38,033 9,656 2 1,970,250 
Gross profit571,356 7,759 8 410 579,533 
Operating expenses (1)457,110 47,084 11,540 11,573 527,307 
Interest and other income (expense), net (2)(225)(6,348)1,509 (2)(5,066)
Income (loss) before income taxes$114,021 $(45,673)$(10,023)$(11,165)47,160 
Provision for income taxes989 
Net income (3)$46,171 
2019 
Net revenue$1,434,974 $21,582 $2,749 $113 $1,459,418 
Cost of goods sold1,147,025 16,551 2,749 — 1,166,325 
Gross profit287,949 5,031 — 113 293,093 
Operating expenses (1)332,372 54,911 14,778 14,521 416,582 
Interest and other income (expense), net (2)559 2,442 (14,039)(8)(11,046)
Loss before income taxes$(43,864)$(47,438)$(28,817)$(14,416)(134,535)
Provision for income taxes185 
Net loss (3)$(134,720)
2018 
Net revenue$1,800,187 $19,043 $2,362 $— $1,821,592 
Cost of goods sold1,452,195 13,127 2,362 — 1,467,684 
Gross profit347,992 5,916 — — 353,908 
Operating expenses506,113 47,006 8,316 9,679 571,114 
Interest and other income (expense), net (2)(476)233 (2,498)(7)(2,748)
Loss before income taxes$(158,597)$(40,857)$(10,814)$(9,686)(219,954)
Benefit for income taxes(2,384)
Net loss (3)$(217,570)
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(1)    — Corporate support costs for the year ended December 31, 2020 have been allocated $39.8 million, $3.8 million, $4.7 million, and $9.1 million, to Retail, tZERO, MVI, and Other, respectively. Unallocated corporate support costs of $8.9 million are included in Other. Corporate support costs for the year ended December 31, 2019 have been allocated $42.0 million, $6.0 million, $4.2 million, and $7.8 million, to Retail, tZERO, MVI, and Other, respectively. Unallocated corporate support costs of $6.0 million are included in Other.
(2)    — Excludes intercompany transactions eliminated in consolidation, which consist primarily of service fees and interest. The gross amounts of these intercompany transactions were $5.1 million, $2.7 million, and $3.5 million for the years ended December 31, 2020, 2019 and 2018, respectively.
(3)    — Net income (loss) presented for segment reporting purposes is before any adjustments attributable to noncontrolling interests.

Upon deconsolidation of MLG, we recognized our retained equity interest in MLG as an equity method security held by our MVI segment which resulted in a $10.7 million gain included in Interest and other income (expense), net in the table above for our MVI segment for the year ended December 31, 2020. See Note 2—Accounting Policies and Supplemental Disclosures, Principles of consolidation, for additional details on the gain recognized.    
For the years ended December 31, 2020, 2019 and 2018, substantially all our sales revenues were attributable to customers in the United States. At December 31, 2020 and 2019, substantially all our property and equipment were located in the United States.