4. Segmented information

The Company’s principal business activity is the management and disposition of used industrial equipment and other durable assets. During the period ended December 31, 2017, the Company continued to integrate its IronPlanet acquisition, which resulted in changes in the basis of organization of the Company, including its leadership structure, sales processes, and management reporting. Most significantly, the Chief Operating Decision Maker (“CODM”) began to assess the performance of the business and allocate resources based on whether the Company’s services are transactional (generating value from the disposition of assets) or non-transactional in nature, and redesigned key metrics accordingly.

These changes resulted in the identification of the following new operating segments as of September 30, 2017:

Auctions and Marketplaces (“A&M”) – This is the Company’s only reportable operating segment, which consists of the Company’s live on site auctions, its online auctions and marketplaces, and its brokerage service;

Ritchie Bros. Financial Services (“RBFS”) – This is the Company’s financial brokerage service, which is reported within the “other” category; and

Mascus – This is the Company’s online listing service, which is reported within the “other” category.

The “other” category also includes 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.

4. Segmented information (continued)



		Year ended December 31, 2017
	A&M		Other		Consolidated
Revenues	$	564,298	$	46,219	$	610,517
Costs of services, excluding D&A		(75,685)		(3,328)		(79,013)
SG&A expenses		(308,874)		(14,396)		(323,270)
Impairment loss		(8,911)		-		(8,911)
Segment profit	$	170,828	$	28,495	$	199,323
Acquisition-related costs						(38,272)
D&A expenses						(52,694)
Gain on disposition of Property, plant
and equipment ("PPE")						1,656
Foreign exchange loss						(2,559)
Operating income					$	107,454
Other expense, net						(30,060)
Income tax expense						(2,088)
Net income					$	75,306



		Year ended December 31, 2016
	A&M		Other		Consolidated
Revenues	$	531,826	$	34,569	$	566,395
Costs of services, excluding D&A		(65,248)		(814)		(66,062)
SG&A expenses		(272,317)		(11,212)		(283,529)
Impairment loss		(28,243)		-		(28,243)
Segment profit	$	166,018	$	22,543	$	188,561
Acquisition-related costs						(11,829)
D&A expenses						(40,861)
Gain on disposition of PPE						1,282
Foreign exchange loss						(1,431)
Operating income					$	135,722
Other expense, net						(5,228)
Income tax expense						(36,982)
Net income					$	93,512

4. Segmented information (continued)



		Year ended December 31, 2015
	A&M		Other		Consolidated
Revenues	$	505,865	$	10,010	$	515,875
Costs of services, excluding D&A		(56,026)		-		(56,026)
SG&A expenses		(249,852)		(4,537)		(254,389)
Segment profit	$	199,987	$	5,473	$	205,460
Acquisition-related costs						(601)
D&A expenses						(42,032)
Gain on disposition of PPE						9,691
Foreign exchange gain						2,322
Operating income					$	174,840
Other income, net						1,596
Income tax expense						(37,861)
Net income					$	138,575

Certain prior period SG&A expenses have been retrospectively reclassified between the A&M segment and the other category to conform with the current presentation. Details of the reclassifications are as follows:



		At September 30,		At June 30,		At March 31,		December 31,
		2017		2017		2017		2016
A&M SG&A expenses:
As reported	$	81,964	$	71,199	$	67,392	$	273,179
Current presentation		81,736		70,977		67,111		272,317
Other SG&A expenses:
As reported	$	3,371	$	3,178	$	3,183	$	10,350
Current presentation		3,599		3,400		3,464		11,212

4. Segmented information (continued)

The carrying value of goodwill of $649,770,000 has been allocated to A&M and $21,152,000 has been allocated to other. 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,		2017		2016
A&M	$	649,770	$	78,934
Other		21,152		18,603
	$	670,922	$	97,537

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
Revenues for the year ended:
December 31, 2017	$	325,244	$	168,928	$	68,408	$	47,937	$	610,517
December 31, 2016		278,198		187,699		52,809		47,689		566,395
December 31, 2015		257,824		166,528		48,419		43,104		515,875



		United States		Canada		Europe		Other		Consolidated
Long-lived assets:
December 31, 2017	$	275,628	$	116,833	$	82,795	$	51,325	$	526,581
December 31, 2016		282,103		108,693		74,491		49,743		515,030