Segmented Information

12 Months Ended

Dec. 31, 2019

Segmented Information

Segmented Information

4.     Segmented information

The Company’s principal business activity is the management and disposition of used industrial equipment and other durable assets. The Company’s operations are comprised of one reportable segment and other business activities that are not reportable as follows:

● Auctions and Marketplaces – This is the Company’s only reportable segment, which consists of the Company’s live on site auctions, its online auctions and marketplaces, and its brokerage service;

● Other includes the results of Ritchie Bros. Financial Services (“RBFS”), Mascus online services, and the results from various value-added services and make-ready activities, including the Company’s equipment refurbishment services, Asset Appraisal Services, and Ritchie Bros. Logistical Services.

	Year ended December 31, 2019
	A&M		Other		Consolidated
Service revenue	$	678,823	$	125,201	$	804,024
Inventory sales revenue		514,617		—		514,617
Total revenue	$	1,193,440	$	125,201	$	1,318,641
Costs of services		99,821		65,156		164,977
Cost of inventory sold		480,839		—		480,839
Selling, General and Administration expenses ("SG&A")		358,016		24,373		382,389
Segment profit	$	254,764	$	35,672	$	290,436
Acquisition-related costs						777
Depreciation and amortization expenses ("D&A")						70,501
Gain on disposition of property, plant and equipment ("PPE")						(1,107)
Foreign exchange gain						(2,937)
Operating income					$	223,202
Interest expense						(41,277)
Other income, net						8,838
Income tax expense						(41,623)
Net income					$	149,140

4.     Segmented information (continued)

	Year ended December 31, 2018
	A&M		Other		Consolidated
Service revenue	$	626,007	$	123,508	$	749,515
Inventory sales revenue		420,511		—		420,511
Total revenue	$	1,046,518	$	123,508	$	1,170,026
Costs of services		87,430		71,628		159,058
Cost of inventory sold		374,339		—		374,339
SG&A expenses		363,549		19,127		382,676
Segment profit	$	221,200	$	32,753	$	253,953
Acquisition-related costs						5,093
D&A expenses						66,614
Gain on disposition of PPE						(2,731)
Foreign exchange gain						(212)
Operating income					$	185,189
Interest expense						(44,527)
Other income, net						11,850
Income tax expense						(31,006)
Net income					$	121,506

	Year ended December 31, 2017
	A&M		Other		Consolidated
Service revenue	$	524,023	$	100,394	$	624,417
Inventory sales revenue		346,774		—		346,774
Total revenue	$	870,797	$	100,394		971,191
Costs of services		75,685		57,504		133,189
Cost of inventory sold		306,498		—		306,498
SG&A expenses		308,873		14,397		323,270
Impairment loss		8,911		—		8,911
Segment profit	$	170,830	$	28,493	$	199,323
Acquisition-related costs						38,272
D&A expenses						52,694
Gain on disposition of PPE						(1,656)
Foreign exchange loss						2,559
Operating income					$	107,454
Interest expense						(38,291)
Other income, net						8,231
Income tax expense						(2,088)
Net income					$	75,306

The carrying value of goodwill of $652,243,000 has been allocated to A&M and $20,067,000 has been allocated to Other in relation to the Mascus acquisition. As in prior periods, the CODM does not evaluate the performance of its operating segments based on segment assets and liabilities, nor does the Company classify liabilities on a segmented basis.

As at December 31,	2019		2018
A&M	$	652,243	$	651,359
Other		20,067		20,235
Total Goodwill	$	672,310	$	671,594

4.     Segmented information (continued)

The Company’s geographic information as determined by the revenue and location of assets, which represents property, plant and equipment is as follows:

	United
	States		Canada		Europe		Other		Consolidated
Total revenue for the year ended:
December 31, 2019	$	743,793	$	247,737	$	173,054	$	154,057	$	1,318,641
December 31, 2018		548,695		284,989		180,817		155,525		1,170,026
December 31, 2017		452,599		245,106		127,706		145,780		971,191

	United
	States		Canada		Europe		Other		Consolidated
Property, plant and equipment:
December 31, 2019	$	256,159	$	106,922	$	73,991	$	47,410	$	484,482
December 31, 2018		260,489		100,983		77,496		47,631		486,599