4. Segment 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 September 30, 2018						Nine months ended September 30, 2018
	A&M		Other		Consolidated		A&M		Other		Consolidated
Service revenues	$	134,604	$	26,770	$	161,374	$	463,076	$	88,660	$	551,736
Revenue from inventory sales		83,972		-		83,972		262,318		-		262,318
Total revenues		218,576		26,770		245,346		725,394		88,660		814,054
Costs of services		20,059		12,994		33,053		62,888		49,855		112,743
Cost of inventory sold		74,341		-		74,341		231,834		-		231,834
Selling, general and administrative
expenses ("SG&A")		83,542		4,781		88,323		272,503		14,549		287,052
Segment profit	$	40,634	$	8,995	$	49,629	$	158,169	$	24,256	$	182,425
Acquisition-related costs						2,007						5,039
Depreciation and amortization
expenses ("D&A")						16,723						49,451
Gain on disposition of property, plant
and equipment ("PPE")						(342)						(958)
Foreign exchange loss						47						31
Operating income					$	31,194					$	128,862
Interest expense						(10,473)						(32,720)
Other income, net						7,182						8,995
Income tax expense						(4,791)						(19,091)
Net income					$	23,112					$	86,046

4. Segment information (continued)



		Three months ended September 30, 2017						Nine months ended September 30, 2017
	A&M		Other		Consolidated		A&M		Other		Consolidated
Service revenues	$	121,255	$	24,683	$	145,938	$	370,794	$	71,272	$	442,066
Revenue from inventory sales		81,463		-		81,463		237,375		-		237,375
Total revenues		202,718		24,683		227,401		608,169		71,272		679,441
Costs of services		18,381		15,080		33,461		51,946		42,147		94,093
Cost of inventory sold		72,476		-		72,476		207,603		-		207,603
SG&A expenses		81,736		3,599		85,335		219,824		10,463		230,287
Impairment loss		-		-		-		8,911		-		8,911
Segment profit	$	30,125	$	6,004	$	36,129	$	119,885	$	18,662	$	138,547
Acquisition-related costs						3,587						35,162
D&A expenses						14,837						37,047
Gain on disposition of PPE						(42)						(1,071)
Foreign exchange loss (gain)						816						(7)
Operating income					$	16,931					$	67,416
Interest expense						(10,558)						(27,311)
Other income, net						592						6,346
Income tax recovery (expense)						3,358						(7,982)
Net income					$	10,323					$	38,469

The Company‘s geographic breakdown of total revenue is as follows:



		United States		Canada		Europe		Other		Consolidated
Total revenues for the three months ended:
September 30, 2018	$	114,410	$	52,711	$	43,935	$	34,290	$	245,346
September 30, 2017		107,812		51,136		29,065		39,388		227,401
Total revenues for the nine months ended:
September 30, 2018		392,904		201,296		123,335		96,519		814,054
September 30, 2017		327,838		170,994		81,930		98,679		679,441