IMMERSION CORP Segments Disclosure
4. SEGMENT INFORMATION
Following the closing of the Transactions with Barnes & Noble Education, the Company operates as two operating and reporting segments, Immersion and Barnes & Noble Education. We identify these segments based on the distinct business activities of each company as they are managed separately.
Our Chief Executive Officer, as the Company’s uses Operating income (loss) as the profitability metric for the purposes of making decisions related to the allocation of resources to each segment and assessing performance of each segment.
Due to the nonhomogeneous operations of Immersion and Barnes & Noble Education, the Company’s Consolidated Balance Sheets and Consolidated Statement of Operations for the fiscal year ended April 30, 2025, separately present the operating assets, liabilities, and operations of Immersion’s business from the operating assets, liabilities, and operations of Barnes & Noble Education’s business. Our Consolidated Statements of Operations includes each segment’s significant segment expenses. Summarized financial information for our reportable segments is reported below (in thousands):
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Fiscal Year Ended April 30, |
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Four Months |
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Calendar Year Ended December 31, |
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Revenues: |
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Immersion |
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$ |
74,073 |
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$ |
45,782 |
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$ |
33,919 |
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Barnes & Noble Education |
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1,481,803 |
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— |
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— |
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Total revenues |
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1,555,876 |
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45,782 |
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33,919 |
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Cost of sales (excludes depreciation and amortization expense): |
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Barnes & Noble Education |
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1,124,175 |
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— |
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— |
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Operating expenses: |
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Immersion |
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Selling and administrative expenses |
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25,757 |
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29,749 |
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15,992 |
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Barnes & Noble Education |
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Selling and administrative expenses |
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252,754 |
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— |
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— |
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Depreciation and amortization expense |
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35,274 |
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— |
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— |
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Other |
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(104 |
) |
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— |
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— |
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287,924 |
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— |
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— |
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Total operating expenses |
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313,681 |
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29,749 |
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15,992 |
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Operating income (loss) |
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Immersion |
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48,316 |
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16,033 |
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17,927 |
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Barnes & Noble Education |
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69,704 |
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— |
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— |
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Operating income (loss) |
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$ |
118,020 |
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$ |
16,033 |
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$ |
17,927 |
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The reconciliation between segment operating income (loss) and income (loss) before income taxes is included within our Consolidated Statements of Operations.
Geographically, Immersion’s revenues have historically been concentrated in Asia, primarily in Japan and Korea. The geographic distribution of revenues for Asia, Europe, and North America for the fiscal year ended April 30, 2025, represented 87%, 8%, and 5%, respectively, of our total revenue as compared to 14%, 1%, and 85%, respectively, for the four months ended April 30, 2024, and 74%, 17%, and 9%, respectively, for the calendar year ended December 31, 2023. The geographic distribution of revenues during the four months ended April 30, 2024 was concentrated in North America due to signing a one-time perpetual license agreement. Barnes & Noble Education’s revenues are derived in the U.S.
The following table is a summary of Property and Equipment Additions and Total Assets by reportable segment (in thousands):
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Fiscal Year Ended April 30, |
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Calendar Year Ended December 31, |
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Property and Equipment Additions |
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Immersion |
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$ |
7 |
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$ |
— |
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Barnes & Noble Education |
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11,230 |
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— |
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Total property and equipment additions |
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$ |
11,237 |
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$ |
— |
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Total Assets |
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Immersion |
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$ |
213,980 |
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$ |
215,731 |
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Barnes & Noble Education |
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888,293 |
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— |
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Total assets |
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$ |
1,102,273 |
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$ |
215,731 |
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As of April 30, 2025, 92% and 8% of Immersion’s long-lived assets were located in Canada and the U.S., respectively, and Barnes & Noble Education’s long-lived assets were located in the U.S. As of December 31, 2023, 96%, 2% and 2% of Immersion’s long-lived assets were located in Canada, the U.S., and the rest of the world, respectively.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Mar 12, 2026 | Showing above |
| 2023 | Mar 11, 2024 | |
| 2022 | Feb 22, 2023 | |
| 2020 | Mar 5, 2021 | |
| 2019 | Mar 6, 2020 | |
| 2018 | Feb 27, 2019 | |
| 2017 | Feb 27, 2018 | |
| 2016 | Mar 3, 2017 | |
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.