Segmented information

3 Months Ended

Mar. 31, 2020

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.


	Three months ended March 31, 2020
	A&M		Other		Consolidated
Service revenue	$	154,743	$	28,380	$	183,123
Inventory sales revenue		90,132		—		90,132
Total revenue	$	244,875	$	28,380	$	273,255
Costs of services		25,095		14,260		39,355
Cost of inventory sold		81,585		—		81,585
Selling, general and administrative expenses ("SG&A")		91,585		6,800		98,385
Segment profit	$	46,610	$	7,320	$	53,930
Depreciation and amortization expenses ("D&A")						19,293
Gain on disposition of property, plant and equipment ("PPE")						(47)
Foreign exchange loss						602
Operating income					$	34,082
Interest expense						(9,182)
Other income, net						3,577
Income tax expense						(5,648)
Net income					$	22,829


	Three months ended March 31, 2019
	A&M		Other		Consolidated
Service revenue	$	143,437	$	28,935	$	172,372
Inventory sales revenue		131,057		—		131,057
Total revenue	$	274,494	$	28,935	$	303,429
Costs of services		20,817		15,252		36,069
Cost of inventory sold		120,475		—		120,475
SG&A expenses		89,182		6,002		95,184
Segment profit	$	44,020	$	7,681	$	51,701
Acquisition-related costs						669
D&A expenses						17,115
Gain on disposition of PPE						(149)
Foreign exchange loss						478
Operating income					$	33,588
Interest expense						(10,816)
Other income, net						2,039
Income tax expense						(6,639)
Net income					$	18,172

4. Segmented information (continued)

The Company’s geographic breakdown of total revenue 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 three months ended:
March 31, 2020	$	190,530	$	35,643	$	26,338	$	20,744	$	273,255
March 31, 2019		183,573		31,531		54,785		33,540		303,429