Segment Reporting

9 Months Ended

Sep. 30, 2020

Segment Reporting [Abstract]

Segment Reporting

15. 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, 2020 and 2019:

	Three Months Ended September 30,						Nine Months Ended September 30,
	2020			2019			2020			2019
Revenues, Net of Discounts
Consumer Packaged Goods	$	74,702,069		$	35,093,858		$	177,355,614		$	71,651,968
Retail		111,948,115			43,532,286			275,451,137			85,501,646
Intersegment Eliminations		(29,546,343	)		(10,635,237	)		(73,460,384	)		(16,522,767	)
Total Revenues, net of discounts	$	157,103,841		$	67,990,907		$	379,346,367		$	140,630,847
Depreciation and Amortization
Consumer Packaged Goods	$	10,029,857		$	7,226,614		$	33,089,808		$	16,100,635
Retail		1,505,019			687,199			5,309,152			1,428,256
Intersegment Eliminations		—			—			—			—
Total Depreciation and Amortization	$	11,534,876		$	7,913,813		$	38,479,960		$	17,528,891
Income Taxes
Consumer Packaged Goods	$	12,928,449		$	1,072,333		$	23,553,449		$	1,761,333
Retail		15,507.883			5,128,000			33,410,598			9,028,000
Intersegment Eliminations and Corporate		—			(2,576,000	)		—			(6,083,333	)
Total Income Taxes	$	28,436,332		$	3,624,333		$	56,964,047		$	4,706,000

Goodwill assigned to the Consumer Packaged Goods segment as of September 30, 2020 and December 31, 2019 was $252,016,532 and $255,211,232, respectively. Intangible assets, net assigned to the Consumer Packaged Goods segment as of September 30, 2020 and December 31, 2019 was $215,986,854 and $228,244,254, respectively.

Goodwill assigned to the Retail segment as of September 30, 2020 and December 31, 2019 was $121,065,184 and $119,873,759, respectively. Intangible assets, net assigned to the Retail segment as of September 30, 2020 and December 31, 2019 was $193,668,663 and $207,002,644, 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 22 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.