Segment Reporting

9 Months Ended

Sep. 30, 2021

Segment Reporting [Abstract]

Segment Reporting

16. SEGMENT REPORTING

The Company operates in two segments: the cultivation, production and sale of cannabis products to retail stores (“Consumer Packaged Goods”) and retailing of cannabis to patients and consumers (“Retail”). The Company does not allocate operating expenses to these business units, nor does it allocate specific assets. Additionally, the Chief Operating Decision Maker does not review total assets or net income (loss) by segments; therefore, such information is not presented below.

The below table presents revenues by type for the three and nine months ended September 30, 2021 and 2020:

		Three Months Ended September 30,								Nine Months Ended September 30,
		2021				2020				2021				2020
Revenues, Net of Discounts
Consumer Packaged Goods	$		121,073,396		$		74,702,069		$		343,014,324		$		177,355,614
Retail			161,016,450				111,948,115				441,241,047				275,451,137
Intersegment Eliminations			(48,412,965	)			(29,546,343	)			(134,276,094	)			(73,460,384	)
Total Revenues, net of discounts	$		233,676,881		$		157,103,841		$		649,979,277		$		379,346,367
Depreciation and Amortization
Consumer Packaged Goods	$		9,132,095		$		10,029,857		$		25,546,006		$		33,089,808
Retail			8,040,971				1,505,019				21,693,473				5,390,152
Intersegment Eliminations			—				—				—				—
Total Depreciation and Amortization	$		17,173,066		$		11,534,876		$		47,239,479		$		38,479,960
Income Taxes
Consumer Packaged Goods	$		16,017,796		$		12,928,449		$		42,951,572		$		23,553,449
Retail			21,302,192				15,507,883				55,251,326				33,410,598
Intersegment Eliminations			—				—				—				—
Total Income Taxes	$		37,319,988		$		28,436,332		$		98,202,898		$		56,964,047

Goodwill assigned to the Consumer Packaged Goods segment as of September 30, 2021 and December 31, 2020 was $350,660,586 and $252,016,532, respectively. Intangible assets, net assigned to the Consumer Packaged Goods segment as of September 30, 2021 and December 31, 2020 was $270,549,090 and $211,303,718, respectively.

Goodwill assigned to the Retail segment as of September 30, 2021 and December 31, 2020 was $246,823,368 and $130,680,935, respectively. Intangible assets, net assigned to the Retail segment as of September 30, 2021 and December 31, 2020 was $278,635,262 and $194,938,316, respectively.

The Company’s assets are aggregated into two reportable segments (Retail and Consumer Packaged Goods). For the purposes of testing goodwill, Green Thumb has identified 26 reporting units. The Company determined its reporting units by first reviewing the operating segments based on the geographic areas in which Green Thumb conducts business (or each market). The markets were then further divided into reporting units based on the market operations (Retail and Consumer Packaged Goods) which were primarily determined based on the licenses each market holds. All revenues are derived from customers domiciled in the United States and all assets are located in the United States.